Do you run or plan to start importing from China but do not know whether your Chinese business partner is a legally registered company? This is a common problem when doing business with Chinese companies, especially when you do it through the Internet and use B2B portals like Alibaba.com. The question seems peculiar, but still not enough people ask themselves about it. Surely it would possibly avoid a lot of scams if the importer had access to this apparently trivial information about a supplier from China.
So how can you check if a Chinese company exists?
We have already written how many Chinese scams can be avoided by confirming the existence of the company in People’s Republic of China. A common mistake commited by businessmen who imports from China is to assume that if there is a website there is probably existing registered company. Unfortunately, often it is not. The statement “The company for certain exists, because it has got a website, the address and all, there are even pictures of the factory” is a sign of naivety. Scammers often copy the contents of the pages of existing Chinese companies, often with the address, photo and logo.
T/T payment is a very common abbreviation, which stands for “telegraphic transfer”. The money is transferred between two bank accounts in a reasonably satisfactory speed (usually within 5 working days). T/T payment is often used in trade relations with China.
Verification of a Chinese company
How the verification of a Chinese company should look like? What kind of information can be obtained through this process? Is it really an essential step, or can the whole process be skipped? We will answer these and similar questions below.
Usually, the whole process begins when we’ve finally find a suitable Chinese company. Many depend on when we made the first successful contact: if we simply received an e-mail offer, risk factor is higher than in the case in which we met our supplier during trade shows.