Here are some simple and very effective ways to protect yourself (compliments of the China Sourcing Information Center):
ONE: Be very sure the name of the supplier is the same for the following:
- On your contract
- The bank account where you send them the money
- The business license of the location of production.
TWO: More important, do an inspection (yourself or a 3rd party) before final payment is made, even with regular suppliers. It only costs a few 100 bucks and it gets very hard for a hacker to fake an inspection at the factory.
Anybody want to explain how to tell if a bank account name is a personal account or a corporate account, even when it’s Romanized Chinese (pinyin)? Please feel free to leave a reply in the comment box below.
Hint: Look for “youxian gongsi” and/or a city name.