During 2009, EASTHV Business Consulting has verified hundreds of Chinese Companies (trading companies and factories ) for our clients who mainly from EU, USA and Middle East. Although we know the condition of China's business environment, we still get shock for the reuslt. It shows, only 53% of verified companies are as same as they described in B2B Website. 21% of them are overstated for their business condition. And 26% of those companies, even some Gold Members in Alibaba turned out to be a business scammer in China. The tricks they usually do are cheating deposit, sending dirty products and increasing price after placing the order.
So, for both buyers and suppliers, it's very important to select your business partners as there are more and more business frauds coming in China. Here are our experienced tips for you to select Chinese companies and suppliers:
For some common verification method, here are some links for you to check out the basic information about the companies in China:
www.yp.net.cn (Chinese Yellow Page, english version)
www.truste.com (international)
www.miibeian.gov.cn/CX/main.jsp (Chinese legal website checking system, in Chinese)
However, Yellow Page is not the good way to judge a business scammer in China, same as in Alibaba or Made-in-China, as long as the scammer pays money for listing, they can get any "Awards" they want. And most of Chinese companies and factories do not know Truste.com, we can only get limited information and choices from this website. The last website is made by Ministry of Industry and Information Technology of the PRC in order to regulate Chinese website. Anyone can check information about one website from this site and see if it is legal in China.
Here is step by step instruction to introduce how to use this system:
- Firstly, go to http://www.miibeian.gov.cn/CX/main.jsp:
- Secondly, click the last item on the right:
- Thirdly, typing in the url of the verified website (do NOT include "http" and "www") in the first input line on the left:
- And then, click "查询" (first button). After your type in the Authentication Code, you can get the information below:
- The first row means number.
- The second one is the company name. You can see if it is fit for your information which get from the company.
- The third row means licence number, all Chinese legal website have one unique licence number.
- The last one means "details".
- What we need to do is clicking "浏览", then you get another page:
The Chinese characters mean from top to bottom are:
- Licence Number
- Comfirmation Date
- Name of Company
- Company Ownership (企业 means corporation, and 个人 means individual)
- Chinese Business Licenses Number
- Website Information (the last one “负责人”on the right means "person in charge", it is usually same as legal person of this company, but it is not absolute situation)
After all, those information can only provide your an overview of one particular company. (listing in this system is free and compulsive for all chinese website, if your verified company do not have website or is not listed in this system, then basically we can say either this company is scammer or this company is too small). We can only get the information of whether this company is exit in real. We can not get more information about its operation status and credit worthiness.
Let's talk about it in our another article: "TOP 7 tips for verifing Chinese Companies".
