Avoid supplier fraud in China

So much has been written about China – some of it making the entire country sound so incredibly exciting and exotic and some of it making the area sound a little bit scary.  However, one thing can be said for sure – its culture is certainly very different from that of the one western buyers are familiar with.

The differences are not only cultural, they are also very present in any business dealings.  We have all read stories about the work ethic that seems to be embraced throughout most of the country and, it is certainly very different from the one that exists in most of North America.

While, of course, it is not a question of “good or bad” – it IS a question of clearly understanding where, how and why China’s business operates the way it does.  This is crucial information for anyone who is thinking of having any type of business transactions in that part of the world.

China itself has suffered from growing pains – having experienced substantial business growth in a relatively short time, which has resulted in many serious business issues – not the least of which is fraud.

In fact, fraud appears to be one of the biggest growing industries in many parts of the world and China has not been spared.  Of course, technology makes this type of transgression much easier, which means that any North American based company, finds itself somewhat weary of dealing with countries such as China – without first conducting a thorough investigation.

Realistically, entering into any type of business arrangement would automatically generate sound due diligence and investigation.  However, when it comes to dealings with China, it is much better to be “safe than sorry”.

This, therefore, clearly explains the need for professional firms, located in China, who specialize in dealing with western companies. They are mandated to act as representatives, ensuring that buyer business interests are thoroughly represented.

Many of these professionals are westerners residing in China, who have considerable experience in dealing with local companies and their representatives.  They are uniquely positioned to look for very specific issues and are extremely knowledgeable when it comes to detecting fraudulent activity – in all of its many forms.

As a business, you have enough to worry about – so make sure that you hire the right people to represent your business interests in China. It is the prudent and fiscally responsible thing to do.