How to avoid being scammed by Chinese buyers
In the previous post we mentioned the possibility of being cheated by some Chinese vendors and saw that indeed there is a significant risk of being scammed if you do not take appropriate measures to protect our interests. We also saw the steps to take to prevent fraud, in this post we will see as it may seem more difficult, can be a victim of false buyers or unscrupulous buyers.
Also here is to start by saying that the vast majority of buyers are companies or honest people doing business in good faith and that will only refer to those trying to fish in troubled waters that involved the desire to export to China and put a dent in your market.
The easiest to spot are the straw buyers, i.e. People who contact us with no real intent to purchase, either through our website or any other advertising medium that we have or are even contacted by us in response to your purchasing requirements on the network.
People are usually pretty idea of international business so in principle give us the feeling of serious people: know the mechanics of negotiating a purchase, discussed in an orthodox quantities, qualities, Prices, position payment systems etc. And even we can get to ask technical explanations, Photos, catalogs and samples, ie we seem to have entered a normal trading buy / sell with a prospective customer or supplier.
The problem arises when the contract, once negotiated its terms and conditions, our new customers tell us that China must pass the notarized contracts and that this process is prior to the signing and costs of an X percent (commonly used between 2 and 5%) and must be paid by the seller, asking us to send you the appropriate amount to take care of the paperwork and they can sign the contract, even sometimes is generous and say they will share with us the 50% of the cost, ie only defrauded of us 50% than initially requested.
To place greater pressure on the naive aspiring seller sometimes mentioning him in China to sign the contract and when you're at home is when you will be notified of unexpected outlay you need to do in advance, well and to finish the play sometimes organize a banquet in luxury, even with female company, also communicate to the seller who is on their own, so that in the best case we shall have borne the cost of a trip to China and at worst we will have paid a good spree lost our swindlers and the percentage they would deposit on our own at the notary.
Be very careful because these people have experience in dealing with foreign clients, They can get to show offices and facilities that are not yours, as their own and make a good editorial contract. There are however some details that can help give them away:
- Not usually put many problems in negotiating, either the price or the terms and conditions, for them it is important to reach agreement, Total not going to fulfill!
- If we see them personally avoid giving cards, which in China is completely abnormal, since someone if card is as if there.
- Attend meetings, especially if they are lunch or dinner we will meet us, in droves, presenting all kinds of directors: general, commercial, international, Marketing, Product, Financial etc., with the good intention to enjoy a free meal.
- Often want to keep the meetings at our hotel and resist showing their offices, even if, eye, they can if incude.
- At the time of signing the contract usually put names incomplete and very common in China, such as: Money, Zhang, That etc., although sometimes the only place in Chinese to throw further.
The only way to guard against such undesirable is to use common sense and think that enter the Chinese market is not simple but laborious, so that before any possibility of sale with excessive facilities must be watchful eye and ask for information either commercial offices or companies established in China, como China Management, offering guarantees us to let us check management potential buyers, based on their experience and the advantage of being "in situ".
In a next post will discuss the problems that can arise from an actual sale if the buyer wants to act in bad faith with the foreign exporter.
