Search Results: scam
Common Scams when doing business in China
Today’s blog post, I will expose how two very common scams can unfold when you are doing business in China. While both these scams have been around for over a decade, in the past few years the number of victims has increased dramatically. 1.) Shanghai Surprise It’s really dangerous when you communicate with your…
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Tips and Practices to Avoid Scams
In my previous blog, I was talking about The 3 Most Common Scams. So you might be thinking “Oh my God how do I protect myself?”. Here’s the good news, it’s easy to avoid scams. All the scary things we talked about can be avoided if you follow a couple of tips and practices in…
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The 3 Most Common Scams You Should Know
Here are a few examples of the most common scams targeting foreign buyers. Scam #1: “The Classic” This is where the scam artist convinces the buyer to send as much up front money as possible. They victim is thinking, “I want to be smart. The product is $1,000, I’m going to only give a $500…
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Huge Red Flag that a Website is a Scam Artist
In this blog post, we will talk about some of the red flag that you should notice when visiting the website of a scam artist. Product Portfolio It’s a big red flag of the website shows a very wide scope pf products. The they are selling snowmobiles, EV’s, jet skis, hover boards, bicycles, motorcycles, cameras,…
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Why do the scam artists target small scale foreign buyers?
Let’s talk about why the scam artists target the small scale foreign buyers. It’s pretty simple. They’re easy to find. There’re so many buyers online: eBay power sellers, people that have a small eBay store, or some online store back home and they buy ten units of this, 20 units of that. There’re so many…
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Small buyer, high risk & E-buyer beware! Don’t fall into a scam trap!
When is it likely that you will fall into a scam trap? You’re highly likely to fall into a scam trap if you meet the criteria as a small buyer or an e-buyer. So if this describes you, be very careful. Two types of common buyers that fall into a scam trap: You’re a small…
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Be wary of these two types of scams when sourcing in China
I’d like to share the various types of scams that you might possibly encounter if you are not vigilant. Even in this pandemic, other people might take advantage of the situation. This new series of blog articles will help you be aware and how to avoid these types of scams in China. Actually, China offers…
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Red Flag Assessment for Transaction Risk, Scam & Fraud
Looking to source in Asia and need a Red Flag Assessment on the potential suppliers you’re vetting? Let us help you with your assessment. The experts at AsiaBridgeLaw.com have seen 1000’s of scams & fraud. Put us to work for you! Typical customer? The Red Flag Assessment is the ideal tool for clients who want…
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Are different skill sets required for sourcing vs inspection?
Here is how we answered a question about what is the main difference in the skill sets required for sourcing and inspection? As the answer is applicable to a wide range of products, I decided to blog about the Q&A. Question about the main difference in the skill sets required for sourcing and inspection: Does…
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NDA is not enough protection when buying from China. Learn what is better.
Here is how we answered a question about protecting copyrights in China for a potential US client. As the answer is applicable to a wide range of products, I decided to blog about the Q&A. Question about protecting Copyright in China: I’m bringing up to speed a possible new Chinese vendor to print some packaging…
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Establishing Net Terms: reality of buying on credit – China suppliers
I’m honored to serve as the primary content curator for Global Sources’ knowledge center. I also volunteer to lead the China Sourcing “ask the experts” help desk for Global Sources. Here is how we answered a question about importing phone accessories from China, but the answer is applicable to just about any businessperson that wants…
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When Do China Suppliers Go On Holiday for the Chinese New Year?
Here is an edited discussion (to protect identity of parties) regarding a question about how the Chinese New Year Holiday impacts the supply chain of electronics sourced by a US company, but the answer is applicable at a national level for a wide range of products, so I decided to blog about the Q&A. Here…
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Payment Methods & Counterfeit Products from China II
I’m honored to serve as the primary content curator for Global Sources’ knowledge center. I also volunteer to lead the China Sourcing “ask the experts” help desk for Global Sources. Here is how we answered a question about importing diving knives from China, but the answer is applicable to a wide range of products…
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China Sourcing: Shipping Drama & Supplier Selection
I’m honored to serve as the primary content curator for Global Sources’ knowledge center. I also volunteer to lead the China Sourcing “ask the experts” help desk for Global Sources. Here is how we answered questions about shipping from China and how to find a supplier of computer components, but the answers are applicable…
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Prototyping and Product Development Dangers in China
I’m honored to serve as the primary content curator for Global Sources’ knowledge center. I also volunteer to lead the China Sourcing “ask the experts” help desk for Global Sources. Here is how we answered a question about building prototypes and launching test order from China, but the answer is applicable to a wide…
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Supplier Payments: Dangers of sending money to a 3rd party or Hong Kong sister company.
I have seen situations where the buyer takes the seller to court because the product had bad quality or was delivered late, but the case was lost because (even though the buyer had clear signatures on the invoice, PO, and warranty terms) the mainland supplier claimed that the PO was never activated because no funds were received to their corporate account. They say “how can we be help liable for an order that was never paid for?”.
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Supplier Payments and Bank Transfer Headaches: What is the zip code for Hong Kong?
Here is an edited discussion (to protect identity of parties) regarding a question from a US buyer regarding how to answer questions from his local bank when sending money for the first time to the Hong Kong Bank account of a Mainland China supplier What is the Hong Kong postal/zip code? “I’m getting ready…
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Importing from China: Documents, Paperwork, Certificates & Compliance
I’m honored to serve as the primary content curator for Global Sources’ knowledge center. I also volunteer to lead the China Sourcing “ask the experts” help desk for Global Sources. Here is how we answered a question about importing LED light bulbs from China to India, but the answer is applicable to a wide range…
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China Sourcing: Making Safe Payments and Expectations about Credit
I’m honored to serve as the primary content curator for Global Sources’ knowledge center. I also volunteer to lead the China Sourcing “ask the experts” help desk for Global Sources. Here is how we answered a question about importing motorcycle part from China, but the answer is applicable to a wide range of products,…
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Payment Methods & Counterfeit Products from China Part.1
I’m honored to serve as the primary content curator for Global Sources’ knowledge center. I also volunteer to lead the China Sourcing “ask the experts” help desk for Global Sources. Here is how we answered a question about importing cognac from China, but the answer is applicable to a wide range of products, so…
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Due Diligence and QC are important. Contracts are Essential.
Executive Summary: Initial productions runs in China are particularly challenging as there are so many unknowns. Distance and language complicate transparency. This is the story of a US buyer who did everything right in terms of due diligence and quality control. But for reasons beyond his control, the entire order was defective. They had the…
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Dispute Resolution in China: Negotiation, Mediation, Arbitration, Court Action
Here is an edited discussion (to protect identity of parties) regarding a question about dispute resolution in Guangdong Province involving electronics sourced by a US company, but the answer is applicable at a national level for a wide range of products, so I decided to blog about the Q&A. Thank you for your help preparing…
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What is a Demand Letter and how is it used in China to solve disputes?
Negotiations with your supplier going nowhere? Have you been wronged by a party in Asia? Need help getting your money back? Demand Letter Service Unfortunately, there is no Better Business Bureau in most parts of Asia where you can take your grievances. You will find very little support from government agencies and local police unless…
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Vietnam vs China: Sourcing 2021 and Beyond
“China + 1” is a sourcing strategy that became popular in the past decade in response to the increased costs of doing business in the PRC. International buyers of all sizes, employed this strategy in order to diversify risk by not having all their production “eggs” in one “China basket”. Vietnam was often touted as…
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China Shipping 2021 and Beyond: Delays, Dangers and Best Practices
Shipping rates continue to rise, experts expect the situation will remain problematic beyond Christmas and Chinese New Year. China Shipping 2021: Background and why we wrote this article There are plenty of articles out there explaining the factors that contributed to this mess (Covid, Price Gouging, Shifts in Supply/Demand…) and no shortage of pundits offering…
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What To Do When You Find Your IP being Knocked-off on Alibaba?
The lawyers in our network receive this kind of request on an almost daily basis: Pitfalls and Best Practices for getting copycats shut down on Alibaba in specific and in China in general In theory, you don’t have to be a lawyer to contact Alibaba and report the knockoff. If you show Alibaba, you are…
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Freight Costs From China Continue to Escalate
If higher prices, increased raw material costs and IC chip shortages weren’t enough to make you pull your hair out, if you’re doing business in China, you know freight costs have also been steadily going up. But recent quotes for clients to ship containers to the USA have reached stratospheric heights, sinking hopes for a…
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Be An Exciting But Honest Potential Customer
I mentioned in my previous blog that it’s not a good practice just to say “What’s your lowest price?”. 4 tips on How to be an Exciting but Honest Potential Customer In this blog post, I will share with you some tips on how to be an exciting but honest potential customer: What I like…
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Common Mistakes and Tips when Visiting Trade Shows and Factory
In this blog post, I’ll share with you the common mistakes that new buyers often make when visiting trade shows for the first few times. ✓ Why It’s important not to talk about the price too soon? Don’t talk price too soon. The suppliers at the trade show are bombarded with buyers who walk…
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What is the Biggest Red Flag When Looking for the Right Type of Supplier at a Trade Show?
Today’s blog post, I will expose how two very common scams can unfold when you are doing business in China. While both these scams have been around for over a decade, in the past few years the number of victims has increased dramatically. 1.) Wide Product Range Probably one of the biggest red flags…
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The Bad, The Ugly, and The Good When It Comes to Agents and Middlemen
Today, I just want to be a little bit better-rounded and explain that sometimes the agents are very good but sometimes they’re the root cause of problems. In this blog post, I’d like to share about the bad, the ugly, and the good when it comes to agents and middlemen Bad, Ugly, and The Good…
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Contracts in China: Q&A with an English-Speaking Chinese Lawyer
In this blog post, our Chinese lawyer answers some of the more common questions about contracts and their enforcement in China. Answers are provided for general reference and are given in a straightforward format, without the “Chinglish” or “Legalese” that you may come across when dealing with other lawyers in China. China Contract: Overcoming Language…
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How to Source Safely from China: 4 Key Steps
For today’s blog post, let talk about the important topic of safe sourcing from China. By far, the single most frequently asked question I get in the mailbag is something along these lines: “Mike, I found what looks like a good Chinese supplier, but it is my first time buying direct from China. I have…
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Supplier Selection & Verification
Thanks to online directories like Alibaba and Global Sources, it is pretty easy to come up with a long list of potential suppliers. But it is not so easy to take this long list and narrow it down to the best one single supplier in all of China for your particular needs. Also, keep in…
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Establishing Net Terms: The Realities of Buying on Credit from China suppliers
I’m honored to serve as the primary content curator for Global Sources’ knowledge center. I also volunteer to lead the China Sourcing “ask the experts” help desk for Global Sources. Here is how we answered a question about importing phone accessories from China, but the answer is applicable to just about any businessperson that wants…
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Frequently Asked Questions
Frequently Asked Questions English Speaking Chinese Lawyers: AsiaBridge Law How are legal fees kept low? Expand Quotes from AsiaBridge Law are not based on the perceived depth of our client’s pockets. The fixed pricing structure applies to all clients regardless of industry, size, sex or nationality. AsiaBridge Law leverages scale to offer clients a lower rate…
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What is a bait and switch strategy in the China Sourcing context?
The bait and switch strategy does happen, whether you’re dealing with the trading company or sometimes even with the manufacturer themselves. You need to be explicit “We visit this factory; I want the production take place here at the location we visit.” When we post about contracts as a next blog series soon, I’ll…
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Red Flag Alert: A Product Portfolio that makes Jeff Bezos jealous!
Look at the product portfolio on the supplier’s website landing page. They’ve got a snowmobile, Segway, jet skis, bicycles, motorcycles, and even more variety when you look deeper. Come on! Not even Mitsubishi, Sony, General Electric, Philips, and Ericson combined have this type of product portfolio. So something is very fishy here. Most likely, it’s…
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Be explicit that there eventually may be a production location audit
When speaking about a production location audit, it is assumed that the building and facilities, management staff, factory workers, production, warehouse and storage, quality, and product development are all covered on gathering good information. In China, factory audits are not a legal requirement but is required if you really want to manage the risks. Why…
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Factory ownership papers reduce the middlemen risk and fear!
Red Flag Assessment Don’t be afraid to ask for ownership papers for the factory. If the factory has some excuse about why they can’t share with you who owns the factory or a business license, that’s a big red flag. They’re obviously trying to hide something. Example (ownership papers): It may be awkward to go…
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Truth about sourcing famous brands in China, not all Apples are equal
The truth about famous international brands. If it’s fashion or electronics, please realize two things. Various major brands including apple manufacture their goods in China as it is cheaper there. This may lead the buyer to think that one can get products at a cheaper rate from China but it is not true. China suppliers that…
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Straight to the Source! Are you talking with the factory owner?
How can you tell if you are talking with the factory owner? You want to go straight to the source to find out about the production of your products. You might ask him … “How many of your employees are from Hunan province? How many from Sichuan? How many from Guangdong?” The trading companies that…
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How do you know if a supplier is a trading company?
How do you know if a supplier is a trading company? This article is the second in a series Why should you assume that all potential suppliers are middlemen? … and we are going to talk about how do you know if a supplier is a trading company? Assuming that you want to go factory…
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PPE Parts 5 & 6: Can you make money importing PPE? How to ensure the products make it from the nearest port to the final destination?
PPE Parts 5 & 6: Can you make money importing PPE? How to ensure the products make it from the port to your inland destination point? Insider’s Guide: How to buy PPE from China during Covid-19 pandemic. Introduction to our series on buying PPE from China during the Covid-19 pandemic. A growing number of buyers…
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PPE Part 4: Can you import Chinese made PPE into your county?
PPE Part 4: Can you import Chinese made PPE into your country? Insider’s Guide: How to buy PPE from China during Covid-19 pandemic. A growing number of people are looking to import Chinese made PPE as the world scrambles to source equipment during the Covid-19 pandemic. Can you import Chinese made PPE into your country.…
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Does the Chinese seller actually have the ability to export the PPE?
PPE Part 3: Does the Chinese seller actually have the ability to export the PPE out of China? Insider’s Guide: How to buy PPE from China during Covid-19 pandemic. A growing number of people are looking into buying PPE from China for supply as the world scrambles to source equipment during the Covid-19 pandemic. Confirm…
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PPE Part 2: How to confirm supplier can actually make the PPE you want to buy.
PPE Part 2: How to confirm if the supplier can actually make the PPE you want to buy. Insider’s Guide: How to buy PPE from China during Covid-19 pandemic. Looking into buying PPE equipment from China during the Covid-19 pandemic. Confirm that your supplier can actually make the PPE. Perform your due diligence to ensure…
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PPE Part 1: The dangers of buying PPE from “your guy’s” “China guy”
Insider’s Guide: How to buy PPE from China during Covid-19 pandemic. A growing number of people are looking into buying PPE from China for supply as the world scrambles to source equipment during the Covid-19 pandemic. Introduction to our series on buying PPE from China during the Covid-19 pandemic. A growing number of buyers are…
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China Trends (Part 2): How to spot the red flags of good relationships going bad before it is too late.
China Trends (Part 2): Increase chance your “good supplier” will turn bad in the next 12 months. Learn how to spot the red flags before it is too late. Red Flag Assessment: Want to make sure you are safe? Why now? Spot the red flags before it is too late! Beijing continues to aggressively pivot…
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China Trends (Part 1): How to verify the supplier is stable?
How to verify the supplier is stable? Good relationships at risk of going bad. Corporate Assessment: When to conduct due diligence on a Chinese company? Why now? Why the need to verify the supplier is stable! Beijing continues to aggressively pivot away from an economy based on manufacturing-for-export. How will China’s move towards a consumer-oriented…
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Due Diligence in China: Essential questions to ask
In general terms, “Due Diligence” is an investigation of a business, individual or deal to establish facts, evaluate potential and identify risk. Early in my China business career I was given some great advice from an old “China hand”. He told me, “before you give any money to a Chinese company, you must do your…
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5 Essential Questions on Trademarks Protecting your Intellectual Property IP
Concise answers to 5 strategic questions about Trademarks Protecting your Intellectual Property. Additional links provided with info on Trademarks in China.
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China Business Blog (ABL)
China Business, Law & Sourcing Blog The content found in this blog is intended to serve as general information about China law, business & sourcing; it is not legal advice nor intended as legal advice Most Recent China Business Blog Posts Older China Business Blog Posts Ready to Contact AsiaBridge Law? If you’re ready to…
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How To Deal With Suppliers About Defective Goods and Partial Shipment?
There are 3 types of verification services that we need to consider if you doubt the reliability of the company. These type of due diligence are very affordable and effective when doing business in China. 1. Due Diligence on the Seller Is the seller a real business with real assets? In other words, make sure…
Read More How to Do Due Diligence on Chinese Suppliers?
Often I’m asked about how to do due diligence on Chinese Suppliers and how to be sure it’s safe to do business in China. How do I know if it is it safe to do business with this supplier? Are there ways to tell if this seller is legit? Is it a good factory to…
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Resources
China Business, Law & Sourcing Library Most of the courses are free! Reach out to Mike via the “contact us” form and let him know which course(s) you wish to take. You will receive a passcode and instructions on how to unlock the content. 100 = Introductory Level 200 = Intermediate Level 300 = Advanced…
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Bilingual Contract Templates & Customization
Most people realize the importance of having a contract when doing business in Asia. But you may have questions about jurisdiction, penalty clauses, official language of the document, use of “chops” and such. The team at AsiaBridge Law specializes in structuring effective (and affordable!) bilingual contracts that protect our clients’ interests yet respect their business…
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Corporate Assessment (CA): Stability, Assets & Reputation
Corporate Assessment (CA): Stability, Assets & Reputation Report | Do you need a Corporate Assessment performed on a company you’re doing due diligence on? If so, read below to learn about what goes into a corporate assessment and how AsiaBridge Law can help. Do you need a Corporate Assessment performed on a company you’re doing…
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Due Diligence
The Corporate Assessment (CA) is the idea tool for clients who want viability into the stability, assets & reputation of a target company.
This report is particularly of value to clients who are thinking about litigation against a Chinese company. If a company doesn’t have assets, it’s not worth the effort to fight and win only to remain uncompensated!
If the subject company has assets and is being sued by others for similar reasons, it could be an opportunity to combine resources.
The subject company will not know the assessment is taking place.
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Practice Areas
Practice Areas – AsiaBridge Law Are you looking for legal support in Asia? Click here to see the complete list of practice areas AsiaBridge Law supports for our clients seeking legal aid. The following services are available in some or all of our coverage areas. Due Diligence & Monitoring Corporate Assessment (CA): Stability, Reputation &…
Read More 4 Simple Ways to Protect yourself in the New Year
It’s a new year and new scams are on the rise. Make sure you’re prepared. An English speaking Chinese lawyer explains the best ways protect yourself in China Be sure to register your IP. China recognizes IP if it’s registered in China and not if it’s on the market or already registered in your home…
Read More Is dealing with a Hong Kong company safer?
While discussing how to protect yourself against trade fraud, one of our clients said: “I prefer dealing with an HK company, it’s safer, at least.” However, among all frauds I’ve heard about, half of the victims sent money to an HK account. Safe or not depends on what kind of HK company it is. Typically…
Read More Too good to be true, rings true, whether buying or selling in China
When I wrote blogs about protecting yourself while sourcing in China, I got a call from an overseas client who was trying to sell his wine to China. He told me he would fly to China to sign a contract with his buyer. The buyer approached the company selling in China and asked to…
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Buyers Beware –Double Diligence
Tip from an English Speaking Lawyer in China: Buyer Beware! Double the Due Diligence when doing business in China! Fraud is always a concern when doing international business; but only sometimes does it actually reveal itself. We say, double your diligence before you pay. A couple days ago, a buyer voiced a complaint to me.…
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