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News: Innovation and Entrepreneurship

How to Identify a Fake or Bogus Chinese Company

Thursday, 7 February 2019   (0 Comments)
Posted by: PSME Advocacy Group
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How to Identify a Fake or Bogus Chinese Company:

How do you prevent from being scammed in China? How do identify a fake company? What are the “signs” or “red flags” of a fake Chinese company? What is the typical profile of a bogus company?

Since I wrote the article “How to Check Out a Chinese Company” I have literally had dozens and dozens of inquiries which have led to an embarrassing amount of bogus companies and good honest entrepreneurs being scammed and or cheated in one way or another. One of the big problems is not all companies are fake but they have developed elaborate systems for manipulating people to get your money, even if it is just a couple thousand dollars. These cheats have good looking websites, email addresses, chat programs, phone numbers all to scam you for a few bucks. You would be surprised at the lengths they will go through for a few hundred dollars.

So you have sourced a suitable company, or at least you think it is suitable, you talk with a representative who answers all your questions well, they show you pictures product, pictures of factories and pictures and some company documents. Then you pay a deposit only to find the product wasn’t delivered on the specified date and you can no longer get a hold of the person you were in contact with. No response from your emails and phone numbers no longer working. You just got scammed. Don’t feel too bad if it happened to you because it is happening all over China to all kinds of good people and professional companies.

Not only do they put up good websites, they have fake company documents they can send you, they have knowledge of the product, heck they may even be a real trading company. They can even be connected with the truck drivers of transportations companies and possibly port officials. These cheaters are well set up, hard to identify and not much you can do if you get scammed by the pirates of manufacturing.

One of the most elaborate scams I came across which inspired this article is an Indian company wanting to purchase large volume of bulk EVA material from China. Specifically a Qingdao company associated with a so called factory in Shijiazhuang Hebei. The foreign company even hired a local person here to help with the process of checks, samples and physically checking the product in the containers before it went to port.

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