Indian SMEs doing business with Chinese firms advised to exercise caution, advisory issued
The Embassy of India in Beijing, China has issued an updated trade advisory for Indian small and medium enterprises doing business with local entities in China. The trade and commercial wing of the embassy said it “regularly encounters a number of problems” faced by Indian companies doing business with Chinese entities in the country.
Advice to Indian companies
It has requested Indian companies to take note of this advisory and its annexure documents and exercise caution during dealings with Chinese entities. The embassy suggested that before doing business with any Chinese entity, Indian companies should contact the Indian Embassy or Indian Consulates in Shanghai, Guangzhou and Hong Kong to verify the credentials of the entity. The concerned mission will respond in 4 to 5 days.
You can take advice from business service companies
An advisory has also been issued for companies in case of big transactions. In case of larger transactions, Indian companies can consult a business services company, which can provide a report on the business transparency, financial health, reputation, reliability and credibility of the Chinese entity.
Furthermore, it is recommended that before doing business with any Chinese entity, Indian companies should keep a copy of the resident identity card, passport of the owner and other responsible interlocutor of the Chinese entity.
Indian companies advised to take extra precautions
Additionally, the embassy said it observed that most of the trade dispute cases involved companies registered in Shandong, Hebei, Guangdong, Jiangsu and Zhejiang provinces. It said that Indian companies are advised to exercise extra caution before doing business with companies from these provinces.
