Tag Archives: Shenzhen

Accurate China Insight: China business scam – Beware of unusually large Purchase Orders

A growing number of small to medium sized companies both in the Republic of Ireland and in Northern Ireland have recently contacted Accurate Group to seek our assistance in verifying the existence of China-based companies (many of which are operating out of the Shenzhen area of Guangdong Province) with generic names such as Brightway, etc., that are sending unanticipated, yet conceivable (and therefore tempting), large purchase orders, with attractive upfront payment terms of up to 50%. Following minimal correspondence, the Irish company contact (usually the Managing Director) is invited to travel to China to sign a contract. However, once in China visiting buyer’s office (which appears to be legitimate, but is merely a respectable cover for a criminal activity), and the initial deposit is due, the seller is asked to pay upfront half the bank fees for the transfer, or a commission in cash. Upon return to Ireland the seller will find no initial payment has being transferred and the party they have been communicating with has disappeared as has any cash they have been paid.

Accurate China Insight - China business scam -Beware of unusually large Purchase Orders

The Irish company usually contacts Accurate after a number of email exchanges with the Chinese company, which points to a level of sophistication on the part of the Chinese entity. They have done their homework and know industry specific terminology across a range of sectors including renewables, electrical filaments, and animal feed.

DON’T BE FOOLED BY SUCH SCAMS

  • If the size of the P.O. from a company in China you’ve never heard of reads too good to be true, that’s because it is!
  • There are easier ways to win in China. If you have never dealt with a Chinese company and just want to be sure they are bo na fide then you should contact a long-term hands-on Ireland China business consultancy with offices and Chinese speaking staff on the ground in China.  As veterans of doing business in China, an Irish China business consultancy, knowing the wily tricks played by Chinese companies, can be of invaluable assistance when verifying the true credentials of a Chinese buyer, supplier or business partner

… and, assuming, the Chinese prospective (product buyer, supplier, partner) company is genuine, an Irish China business consultancy can help you to negotiate and make the sale!

  • Never travel to Company to meet a company without verifying the integrity of the product buyer, supplier, or partner company that has invited you to visit them. In any case such a company will need to supply you with a Letter of Invitation (chopped / stamped with the official Chinese company name – any company doing business in Mainland China should be properly legally established [such as a company, a rep office, a branch, etc.] for tax and invoice issuing purpose), which you need to provide to your local Chinese Embassy when applying for a China entry visa. 
  • Even if you have received a contract in English, assume there is always a contract in Chinese. Ask for a copy and have if verified to ensure that contracts are exact copies of each other.

Incidentally it’s not just small and medium companies who fall prey to sophisticated China scams. No company doing business in China is immune: Look at what happened to Caterpillar who recently had to write off most of a China deal after uncovering “deliberate, multi-year, coordinated accounting” fraud (Source:  http://www.reuters.com/article/2013/01/19/us-caterpillar-siwei-idUSBRE90H1C520130119)?

Do note that these kinds of difficulties are experienced by very few Irish companies doing business in China. Follow your gut instinct, use commonsense and take the same precautions as you would doing business anywhere else.

Accurate China Insight - China business scam -Beware of unusually large Purchase Orders 2

Source: http://accuratelimited.com/blog.view.php?id=t8/dwXC9GMw=

Niall O’Reilly

Managing Director, Accurate GroupIreland China Product & Business Development (Export, Source, Import, Partner Due Diligence) Consultants doing business in China for over 24 years

China Office : 1-3 Ying Hui Xing Zhou, Jiang Nan Shui Xiang Lian Sheng Road, Yu Hang District, Hangzhou. China 310023| O: +86 571 8709 1253

Ireland Office: 93 Upper Georges Street, Dun Laoghaire, Dublin, Ireland| O: +353-1271-1830

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Filed under Accurate China Insight, Business, China, Corruption

Accurate China Insight: How many people from Ireland are living and doing business in China?

As a Chinese language student studying in Beijing in 1989 I recall when all 8 members of the Irish community living in Beijing were evacuated by the Embassy to the safety of Hong Kong, following the June 3rd / 4th massacre in Tiananmen Square. It was a time when down in Shanghai the view from ‘The Bund’ (Wai Tan) across the Huangpu River to Shanghai’s Pudong district offered little more than a jumble of old low-rise warehouses, residential units and farming lots. Foreigners were few and far between. Living in China was considered at best a hardship posting.

Accurate China Insight - Irish population in China

Now, following the establishment in China of close to 150 Irish-owned business operations led by Glen Dimplex, CRH, Treasury Holdings, PCH and Kerry Group, etc, an influx of teachers from Ireland to teach English, and Irish graduates attracted by the growing range of job opportunities on offer to Irish candidates, the number living and working in China (including Hong Kong and Macau) has increased to at least 3,000 Irish citizens (Source: http://www.thepost.ie/themarket/china-in-your-hands-54873.html), an estimate, based on the numbers of citizens registered with the Embassy in Beijing and Consulate in Shanghai, and the volume of consular business (including passport applications, other document applications and consular assistance) conducted.

However, this number is likely to be at the low end of the spectrum simply because:

  1. there is no obligation on Irish residing in China to register with the Embassy and Consulate; and
  2. many Irish scattered across China in cities such as Hangzhou, Urumqi, Changchun, Chengdu, Shenzhen, Shenyang, Dalian, Ningbo, Qingdao, Tianjin and Xiamen, etc., probably haven’t registered with the Embassy or Consulate.

The total number of foreigners living in China at the end of 2010 was about 600,000 people according to the latest Population Census. According to the Xinhua News Agency:

the top three home countries of the foreigners were the Republic of Korea (ROK), the United States and Japan. Among the foreigners living on the Chinese mainland, 56.62 percent or 336,245 were males and 43.38 percent or 257,587 were females”.

Note: The Embassy and Consulate are restricted in law in how the citizens register is used and cannot make it available outside the Embassy and Consulate. The more people who register with them the more accurate the estimate can be.

Sources:
The Sunday Business Post-

http://www.thepost.ie/themarket/china-in-your-hands-54873.html

Xinhua-

http://news.xinhuanet.com/english2010/china/2011-04/29/c_13851456.htm

Accurate China Blog http://www.accuratelimited.com/blog.view.php?id=1whhJh5C+5Y=

Niall O’Reilly

Accurate Ireland – China Product & Business Development (Export Sourcing Import) Consultancy

Tel: +353 1271 1830 / +86 15257194468

http://www.accuratelimited.com

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Filed under Accurate China Business Services, Accurate China Insight, Ireland, Irish

China – Under The Hood: Irritated Chinese Immigration Officer asks a thought-provoking question

How to unintentionally make a Chinese Immigration Officer lose face?

How to unintentionally make a Chinese Immigration Officer lose face?

He is wearing a uniform that in China suggests a pretense of authority and power, which he seems determined to exercise.  Noisily exhaling he’s flicking through the pages of my passport with that contemptuous self-important look which always makes me feel so grateful I have a foreign passport.

“Why you come China many time?”,  the eye-balling Immigration Officer challenges me.

He looks quite irritated, which I guess is understandable because I’ve made him lose face in front of his superiors. A team of three officers have just helped him to identify the apostrophe ” ” key on his Chinese keyboard….  Irish family names [O’Reilly, O’Donnell, O’Maolcraoibhe,  O’Seachnasaighare, etc..] are a novice Chinese Immigration Officer‘s worst nightmare.

The Irish Surname - A China Immigration Officer's worst nightmare

The Irish Surname – A China Immigration Officer’s worst nightmare

His question provokes a chain of thoughts as I reflect a little too deeply for a fitting answer.

“That’s a really good question”, says I…… …. clutching my passport and briskly walking in the direction of Hong Kong Immigration.

Even if there are a few hundred people in front of me patiently waiting in line, this has to me my favourite queue in the world… One-by-one Chop!… Chop!… Chop! …  and finally seventh heaven. Works every time!

Hong Kong just feels so different (mindset, style, colours, passion) and so Niall!

Always great to be back in fragrant Hong Kong for a recharge.

Irritated Chinese Immigration Officer asks a thought-provoking question

“Why you come China many time?”

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Filed under 2011, China, Hong Kong, Travel