Practical tips for conducting safe business deals in Asia
Running business in Asia can be risky. There are numerous cases about how entrepreneurs failed in their business activities because of unreliable partnerships. There is always a risk of encountering fraudulent behavior when doing business in Asia.
When doing business with an Asian company you should keep in mind that when it comes down to payment of goods or any other financial transaction, you should be well secured upfront. Here are some practical tips for making sure you minimize the risk of fraud before and during your activities in Asia.
7 Steps to make a safer business deal:
1. - ALWAYS verify the credentials of your Chinese counterpart, such as Chinese character name (no Chinese company has an official English name!), Business License, Physical Address, Call all the phone numbers of the physical address or other information you can find online;
2. - ALWAYS verify who is the legal representative of your Chinese counterpart (are you speaking with a person in charge?);
3. - ALWAYS request ID copies from all other persons authorized to sign on behalf of the company, if the Chinese counterpart refuses to let their legal representative be involved;
4. - ALWAYS have a detailed written contract in Chinese (and English) language in place under Chinese laws, in case of multiple purchase orders;
5. - ALWAYS have a written document in place with the company stamp of your Chinese counterpart for every single purchase order;
6. - ALWAYS build in a layer of protection such as engaging a trusted foreign company with local presence and experience in China for verification of credentials, quality control or production management, negotiations in Chinese, and final check before sealing the container;
7. - ALWAYS register your trademark in English and/or Chinesebefore even before talking to any Chinese counterpart.
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