The U.S. Commercial Service reports that its clients have seen an increased number of unsolicited buyer requests from China, many of which turn out to be scams. Here are some characteristics that should cause suspicion and careful due diligence:
- You were contacted via the web by a Chinese company, unsolicited
- The Chinese company expresses interest in buying an unusually large volume of goods
- Insistence that a senior executive travel to China to sign a contract
- Request for money prior to signing a contract – to pay for a “reception” or for administrative fees in connection with the contract
- The Chinese company has been in business for a short time and/or cannot provide verifiable references
U.S. companies should always seek trade references and follow up on them. The U.S. Commercial Service recommends that you ask for a copy of the Chinese company’s business license, which should be very easy for it to provide. Make sure that it is current and valid and that the information is provides matches any information the company has given you. In addition, an internet search of the Chinese company name and the word “fraud” may help identify the most notorious scammers.