The Embassy of India in Beijing, China has issued an updated trade advisory in the interest of Indian small and medium enterprises that are doing business with local entities in China.
The Trade and Commerce Wing of the embassy said that it has “regularly come across several problems” faced by Indian companies doing business with Chinese entities in the country.
It has requested Indian companies to “take note of this advisory and its annexure documents and adopt precaution while deadline with Chinese entities”.
“It is highly recommended that before doing business with any Chinese entity, Indian companies write to the Indian Embassy or Indian Consulates in Shanghai, Guangzhou and Hong Kong to verify the credentials of the entity,” the embassy said.
“The respective Mission will respond in 4-5 days,” it added.
It also issued an advisory in case of large transactions.
“In case of large transactions, it is highly recommended that Indian companies may consult a business service company, which can provide a report on the business transparency, financial health, reputation, reliability and credentials of the Chinese entity,” it said.
Furthermore, it has been recommended that before doing business with any Chinese entity, Indian companies should “collect and retain” copies of both the resident identity card, passport of the proprietor and other responsible interlocutor(s) of the Chinese entity.
In addition, the embassy stated that it has observed that a majority of the trade dispute cases involve companies registered in Shandong, Hebei, Guangdong, Jiangsu and Zhejiang provinces.
“Indian companies are advised to take extra precaution before trading with companies from these provinces,” it added.
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