How to avoid scams in China
In response to the blog post Red flags you must know to avoid scams, a friend of the SBL who does due diligence for the US Department of Commerce, wrote in with some additional red flags that should concern buyers. Here is what she had to say:
BIG red flags if you are contacted by an Asian buyer that wants to do business with you:
- The Chinese company contacted you off the Web.
- They have “Import/Export” or “Trading” in their name.
- They want to conduct a very large volume of trade.
- They insist your senior executive travel to China immediately to sign the contract with them in person.
- They request money prior to the trip to pay for a reception in your honor, and/or, once in China, they request money or goods to grease the wheels with local officials.
- They ask you to share a ‘notarization fee’ based on a percentage of the contract price.
- They have been in business for less than one year.
- They can provide no verifiable references.
Learn how to prevent losses when sourcing in China
What else should be on this list? Anybody even been contacting out of the blue via email by a Chinese seller and it turned out legit? How did you know it was safe before making payment? Please give us your input in the comment section below.