India issues trade advisory against Chinese firms
WARY OF DRAGON LAND
- The Indian Embassy in Beijing received 86 complaints of trade disputes from Indian companies in 2012
- Most of the disputes originated from Hebei province and the municipality of T1anjin.
- Chinese companies changed their "modus operandi" to catch Indian businessmen unaware
BEIJING: India has warned Small and medium enterprises (SMEs) against doing business with dozens of Chinese companies including those listed on online sites after Indian businessmen were found to have been duped in the last few years.
The Indi an Embassy in Beijing received 86 complaints of trade disputes from Indian companies in 2012. Most of the disputes originated from the province of Hebei and the municipality of' Tianjin.
The disputes, according to n1re advisory issued by the INDIAN Embassy on Wednesday were divided into 10 categories ranging from denial of payments for goods, supplying fake goods and Chinese companies disappearing after receiving advance payments.
Diplomatic sources said the Chinese companies change their" modus operandi" to catch Indian businessmen unaware. Investigations revealed instances of hacking where intended payments never reached Indian exporters.
"Some instances of hacking of mail boxes have also been not iced whereby a foreign importer is purportedly sent an email with bank details by an Indian exporter. The foreign company transfers the amount to the bank account as per the email. However the money does not reach the original bank accow1t of the lncli1m exporter. Further investigations reveal that the Indian company's mailbox was hacked to send an email to a foreign company to transfer the amount to another bank in China," the advisory said.
A number of precautionary steps were listed before getting down to business in China. The list includes a detailed preliminary online check, insisting on passport or identity card copies of representatives of Chinese companies, physical inspection of goods before consignments are loaded in China ar1cl releasing payment only after the quality of goods is checked
Iran Business Guide
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