How the new Company Law Affect your Business Risk in China

When you are doing business with NEW companies (registered after March, 2014) here in China, you have to be more careful these days. We received most case reports these years compared to the periods before 2015. Some reporters said that the economic crime cases had been increased nearly 18% since the implementation of new Company Law, which came into effect on March 01, 2014. 

In order to streamline the whole corporation registration process and benefit more and more small businesses, China State Council adopted a new Company Law in early 2014, the new Company Law mainly involves following three amendments: 

1.On the registered capital

New Corporation Law of China modified the “statutory capital system” with a new system combining the “subscription capital system” and “statutory capital system”, indicating that the shareholders do not have to collect full capital to complete the company registration in China. 

2.On the license examination

New Company Law of China streamlined the official approval and assessment as well. The whole company registration used to have three different permits via three different official organs, that is Business License, Organization Code Certificate, Taxation Certificate respectively, now all these certificates are replaced by ONE unified Social Credit Identifier. With less annual official inspection and supervision, there are more and more business scammers springing up this year. It’s said that more than 28500 enterprises went bankrupt in 2015 only. 

3.On the least capital requirement inspection system

The new Company Law cancelled the Least Capital Requirement for some small business and also relaxed (eased) the policy on the registered capital for sharehold companies, further faciliating the market access for startups. Meanwhile, this policy also helped a lot to the crinimals as their crime cost has dropped substantially. 

All these measures dramatically facilitates the registration process and benefits lots of startups indeed, however, it also gives a hand to lot of criminals and lots of fly-by-night (shell) companies came out in 2014 and 2015. According to the statistics from STIN company, the demand for Company Verification and Supplier Auditing Service has increased 20% since late 2014. For any big business in China, a local Verification, Inspection or Auditing service plays a more and more important role in your safe business in China ! 

How to invest in China?

China, the second largest economy in the world, has kept more than 8% economic growth rate annually for last three decades. Investing in China and sharing the booming of the China economy have been a smart choice for an investor. But, how to invest in China while you are still not familiar with China market?

1. If you are running a non-financial company, you can invest in a varieties of industries, from a service industry to a manufacture industry, at a varieties of provinces, from south to north, and from coast area to inland area, from an economic Development Zone to a tax preference zone, in China.

 2. If you are a financial institution investor, you have a varieties of options to invest in China. You can invest in the China's capital markets by the the program of QFII ; You can invest in the China's financial industry by buying the stake of a small and medium-sized of regional bank (or credit union), or an insurance company, or an investment bank;

3. If you are a venture capitalist or a private equity investor, your approach is more flexible than any other investors for sharing the economic growth of China.

4. If you are an individual investor, you can invest in a Greater China Area mutual fund in Canada or in the United States; or you can buy a stock of the company who is running business in China; or you can buy a stock of a Chinese company which is listed in the Toronto Stock Exchange, or listed in the NASDAQ, or listed in the New York Stock Exchange, or listed in the Hong Kong Stock Exchange.

No matter what industries or sectors you will invest in, you can choose a right place to start, not necessarily in the biggest city in China, say, if you’re a firework businessman, you’d better invest and live in Liuyang city, the so-called ‘ home of fireworks’, where there are more than 400000 people directly or indirectly engaged in this product in China. In this case, do not forget to do a market survey first or hire a professional business consultant from STIN (www.chinabizservices.com) to learn more resources information first before you invest anything in China. Local experts can save you lot of time, cost and energy etc in doing business in China. .

  As an investor outside China, you have many options to take; but do you know which option you will take when making a decision to invest in China? To invest a business is to try to share the profit of the business, which means that the business in your expectation will grow up, in the future. How do you know a business in China will grow up? There are still a handful of cases of the bankruptcy of business even the economy of China has grown up at the average of 9% yearly since 1980. This is the risk of investment. How to get rid of the risk of investment in China? You have to do a research on the economy of China, and the investment policy, tax policy, and the macro economic policy of China. You have to make sure you choose a right industry, or a right area, or a right partner, or a right company for you to invest in order to share the booming economy of China. STIN professional business consultant can smooth your investment in China: www.chinabizservices.com

 

How to carry out a professional sourcing service in China?

 What is a Professional Sourcing service?
Professional Sourcing refers to the sourcing service carried out in a very professional way. Some buyers only search online or simply attend a general commodity trade fair, which is regarded NOT professional enough sometimes.

How to conduct a Professional Sourcing service?

First of all, Professional Sourcing means product proficiency; you have to be very proficient with the product itself, covering the product name, specifications, descriptions, application and market price etc. You have to try to be an expert in this field.

Second, Professional Sourcing indicates the proficiency of related manufacturing bases. In China, almost every city or province has their own pillar industries, esp for some special items, say, ceramics, chemicals, fireworks etc.

Actually Canton Fair is not the best place for you to meet and find out some qualified suppliers in China. There are 90% of them are trade companies, individuals or even scammers.

The best place for you to meet and find out some qualified suppliers is the manufacturing bases. For example, if you're looking for 'fireworks', you have to go to Liuyang city, which is called 'home of fireworks', where there are 400000 people directly or indirectly engaging in this business in China. 'Liuyang -- made' fireworks account for more than 60% global market at present. This is the same to other products; almost every product has their unique manufacturing bases in China. This is why there are more and more clients booking our 'professional sourcing' service in China.

This is the same situation to other products, say, Zhuji for socks, Yiwu for general commodities, Xintang for jeans, Wenzhou for ties and shoes, Anji for bamboo products, Liling for ceramics etc, Yongkang for hardwares, Shenzhen for electronics, Guangzhou for clothes, Xuchang for hair products, Changzhou for floorings etc. Of course some products may have more than two or three manufacturing bases as China is too big. For example, in North China people to go to Tianjin to buy steel banquet chairs while in South China, Shunde is the largest manufacturing base for those items. 

Third, Professional Sourcing means that you have to attend professional trade fair instead of the general trade fairs. Say, if you’re buying furniture you can have a try on Furniture China (www.furniture-china.cn), and this is the same for other product sourcing,

Door industry -- www.door-expo.com, Lock industry -- www.lock-china.net and Tube industry -- www.tubechina.net etc. More professional fair information, please have a look at: http://www.chinabizservices.com/news/2013/0701/41.html

Lastly, Professional Sourcing needs professional verification skills, you have to be able to check out their export or import qualifications and obtain their full registered information in order to avoid future business scams in China. Some professional sourcing service company like STIN offers FREE basic verification service on their suppliers after the client books their sourcing service in China.

Why do you need a professional sourcing service in China?

STIN sourcing service is becoming more and more popular among our clients worldwide due to following reasons:
First we can save you lot of time, cost and energy etc in China.
Second we are able to find out the truth and check out any of your suppliers with local officials in person.
Third we are local experts and we are very familiar with the industry clusters or manufacturing bases all over China.
STIN professional sourcing service is one of the best in China:www.chinabizservices.com

 

Tips for you to verify your Chinese suppliers online...

We have checked out hundredss of Chinese companies for clients worldwide this year. Some of the companies, even the Gold members of Alibaba turned out to be a business scammer in China. Your business cannot legally protected by Chinese government authorities if you're dealing with illegal Chinese companies. Hence, it's very important to verify your business partner as there are more and more business frauds coming forth in China. Here are my tips for you to verify a Chinese company:

Generally speaking, there are some links online for you to check out companies in China:
www.yp.net.cn
www.chinaeall.com
www.cnaic.org.cn
www.114win.com
etc
However, there is no English version of above services so far in China, you have to know a little Chinese to check it all by yourself. Also some of the companies did not register themselves with above yellow pages. So yellow page is not the key way to judge a business scammer in China! The best way to check out a supplier in China is to visit them in person or check them out with local government authorities in China or you can book a Basic Verification or Supplier Inspection service from a third-party service company like STIN: www.chinabizservices.com

If you don't know Chinese, still you can pre-verify your business partners from following aspects:

1. Contact information
Please note that whether their contact information is right or not, most of the scammers don't offer a right address, tel and fax number online. Some of the tel numbers are empty and some add and tel don't exist at all, they don't offer a company tel number, a private number or mobile phone number instead.

2. Registered corporate number
Every legal company in China has to register itself with Chinese government authortities and obtain an unique company number. If your business partner cannot offer you a unique registered corporate number, definitely he is a scammer, of course, he may submit you a fake number, so you have to check it out with local administrative government organs with the number he offered. There is a Chinese organ called Bureau of Industry & Commerce ( have branches at all levels ), which is the only government organ responsible for the registration of legitimate companies or enterprises in China. For example, for any legitimate companies from Changsha or Hunan province, you can contact the local administrative organ for confirmation: http://www.csaic.gov.cn/ Tel: 86-731-2891606 or http://www.hunancom.gov.cn/ Tel: 86-731-2287058 , the problem is you have to report your case in Chinese sometimes because most of the local officials do not know too much English in China.

3. Incredibly low prices, esp for international brands
Most of Chinese scammers usually entice foreigners with a very low price. If the prices they offered is too low to believe, you may have a further investigationon your partner to know why their prices are so low. Most of the scammers in China profit a lot by selling  or fakes of some branded goods to the overseas market, this is very risky because the goods shall be confiscated or detained by Chinese customs houses in case it considered illegal in China. By the way, please remember that the price for authentic /original brands like Sony, Apple, Nokia, Dell etc should be almost the same at anywhere on the globe. You cannot import from the unthorized brands distributors with cheaper price in China. They must be selling relicas,  ones or copies of brands etc ! Please simply forget such suppliers in China !

4. Payment and shipment terms
The scammers never accept L/C as their payment terms, they prefer Western Union, Paypal and T/T etc. Also they never deliver goods through formal channels in China, they prefer to deliver samples by Express like Fedex, TNT, EMS to avoid more examinations from Chinese customs house. Most of the scammers use Private Bank Accounts in China!

5. Warranty and after sale services
Scammers never take some measures to guarantee their quality and after-sale services after your payment, they may promise you a lot before payment. It's lip-services only!!!

Be careful with some of the Chinese suppliers!
By the way, I have to mention that, it does not mean the manufacturer has the right to sell or buy in case he has obtained a legitimate unique company number from local BIC in China. In China, all the enterprises with the right to import and export has to apply and obtain a certificate called Certificate of Import & Export from Ministry of Commerce of PRC and its authorized local organs in China after their registration at local BIC. Also a formal trade company has to register with Chinese Customs House and its branches before his formal business with foreign counterparts in China. Then he has to register himself with local Bureau of Inspection & Quarantine in case his products are in need of quality control. Without the registration from above local government authorities from China, no company can deal with you in formal channels in China. STIN verification or auditing service (www.bizinchina.cc or www.chinabizservices.com ) can help you out if you know nothing about Chinese!

Some important Government Organs (official websites) regarding doing safe business in China

When you’re doing business in China, you might need help from local officials, say, verification of business licenses and export licenses, you can contact SAIC (www.saic.gov.cn) for help, when you have trade disputes with your Chinese suppliers, you can obtain help from Ministry of Commerce of P.R.China (China Mofcom: www.mofcom.gov.cn), here is the list of some important government organs for your reference:
China IPO: www.sipo.gov.cn ( to register your Patent in China)
SAIC: www.saic.gov.cn (to check out your suppliers in China)
China Trade Mark Office: www.ctmo.gov.cn ( to register your trade mark in China)
CHINA CUSTOMS: www.customs.gov.cn (to check customs data from China )
AQSIQ: www.aqsiq.gov.cn ( to apply quality certificate in China)
CHINA MOFCOM: www.mofcom.gov.cn ( to solve trade dispute issues )
CHINA FOREIGN AFFAIRS: www.fmprc.gov.cn ( to solve foreign affairs )
CIFA: http://210.51.174.103:801/ywb/ (www.cifa.gov.cn) ( to source a good shipper or shipping agent in China)
China Quality Certificate Centre: www.cqc.com.cn ( to apply CCC certificate in China )
CFDA: www.cfda.gov.cn (www.sda.gov.cn) China
MPS: www.mps.gov.cn (to report your case to local police station)
China Commodity Net: http://ccne.mofcom.gov.cn (suppliers officially verified from China)
CCPIT : www.ccpit.org (China Council for the Promotion of International Trade)
China Arbitration Commission: http://www.cietac.org.cn or www.cietac.org ( to obtain arbitration service)
ACLA: www.acla.org.cn ( to find out enough qualified lawyers from China)
China Court: www.court.gov.cn ( to take legal actions against your suppliers in China when necessary) We are consultants from local markets in China, any question is welcome. Verification (safety), Price, Quality and After-sale service play nearly the same role in doing business in China.

Business Risk Control in China: Part of the List of Runaway Chinese bosses from 2011 to 2014

Police begin to arrest “runaway bosses” : Police have begun arresting entrepreneurs who have gone into hiding to avoid repaying bank and informal high-interest loans. One of our UK client’s largest suppliers --a big factory in Zhejiang, China, went bankcrupt suddenly in November, 2013 and lot of foreign clients suffered a lot, indicating that more and more big companies are involved in the excessisve investment on real restate industry in China. A long list of Chinese runaway bosses from 2011 to 2014 is already listed online. Evaluating business risks becomes especially precarious in volatile information-poor emerging markets where issue-based isolated models of risk assessment no longer seem to apply. In particular, multinational corporations seem not to use more established models for evaluating business risks in the second largest market for foreign direct investment (FDI), China. Company Verification, Factory Auditing and Business Investigation service etc are playing a more and more important role in doing business in China at present. Containing financial risks and avoiding further stimulus measures should be the main priorities for policymakers in China, as they contemplate fresh strategies for sustained economic growth, the International Monetary Fund said on Thursday. "We consider that vulnerabilities have risen to the point where containing them should be a priority. Therefore, additional stimulus should only be deployed if growth slows significantly below this year's target," David Lipton, first deputy managing director of IMF, told a news conference in Beijing. China has become too dependent on credit and investment, including in real estate, since the global financial crisis (in 2008), the IMF said in a statement after two weeks of talks with Chinese officials for its annual assessment of the nation's economy. "Continuing reliance on credit-fueled growth means that risks are still rising, and although the government still has sufficient buffers to prevent a disorderly adjustment and sharp growth slowdown in the near term, more sustained efforts to reduce vulnerabilities are necessary," the statement said. Although there are many negative news regarding doing business in China, but China is still the third largest exporter in the world – proof that there are plenty of serious and high quality suppliers. So all what you have to do is work with a qualified local expert in China and do enough Due Diligence work before payment.

2011 to 2014 List of Runaway Chinese Companies and Bosses (part)

2011年--2014年部分中国跑路企业和老板名单 （信息来源：网络） 2014年跑路名单 2014年6月22日，媒体证实中都集团董事长的杨定国跑路，留下20亿债务，中都集团成立于2002年，目前主营业务有房地产、商业百货、酒店、富绅特系列（物业管理、置业、诺维园林、金融等）四大事业体，旗下共有全资子公司20余家。 跑路名单还包括：青岛君利豪集团王莉、福建龙海辉昌工贸有限公司老板黄建辉、曾经的柳州首富、正菱集团有限公司掌门人廖荣纳等 中新网杭州5月22日电 今年3月初，浙江杭州世帛时尚家纺有限公司(以下简称“世帛”)老板因欠下一亿多元人民币民间借贷，无力偿还之下携家眷跑路，使得该企业近200名员工聚集到03省道东复线五联村路段围堵 6月4日，福建龙海市曾经的纳税大户辉昌工贸有限公司老板黄建辉一家跑路，留下“亿元以上”的负债。在众多跑路老板中，黄建辉只是小角色。同一天，广西柳州首富、曾登上中国民营企业500强榜单和胡润百富榜的正菱集团董事长廖荣纳也和其家族成员一起集体失联。不断被披露的消息显示，廖氏涉嫌非法吸收公众存款，已被当地警方立案调查，其负债规模高达百亿。 此前被传出欠债跑路的老板还包括四川民营企业腾中重工实际控制人李炎、山东青岛房地产企业君利豪集团老板王莉等人。中国的银行业曾经在去年的此刻出现过一波“钱荒”，但今日境况已经大为不同。得到教训的银行不再胆大妄为，它们的风险防控意识似乎在一夜之间苏醒。一些被认为风险系数较高的行业，几乎被全线收紧信贷，这让那些曾经玩资金胜过干事业的老板们痛苦不已。地下融资渠道曾经帮助他们转危为安，但中国实体经济的不景气、宏观调控的新手段，以及持续高压的反腐力度，让这条通道的代价更加沉重。击鼓传花的游戏玩不下去了。这是中国资产泡沫被捅破的开始。看上去，危险比想象的要大不少。令监管层担忧的是中国最近几年间不断膨胀的表外资产。由于游离监管之外，没有人能准确知道中国到底有多少表外资产。一家不愿署名的投行最近提供的一份报告显示，截止到2014年5月，中国的表外资产规模已经接近58万亿，在2010年至2013年间，平均每年的新增表外资产超过8万亿。 2013 年 福建规模最大的民营印刷企业之一——福州千帆印刷有限公司厂区内，挤满了搬东西的人，他们忙个不停：撬开仓库卷帘门，用叉车、货车不停地从仓库里搬出货物……“千帆破产，老板跑路，我们是来拿回自己的货。2013年9月12日当地一家规模上亿元的雄记LED灯饰厂(下称“雄记”)老板疑似逃匿，涉嫌合同诈骗及拒不支付劳动报酬，当地公安部门已介入。　与雄记厂房对门的世豪磊晶LED老板也被曝“跑路”。2013年钢贸企业倒闭几十家。 2013年倒闭的P2P企业 众贷网，2013.4.2，经营不善，倒闭 酷跑金融，2013.5.15，跑路，经第三方协调追回资金 非诚勿贷，2013.6，逾期提现，2700万，每日还款 徽州贷，2013.6，逾期提现，暂时恢复正常 铂利亚，2013.6，经营不善，倒闭，现已重新开业 中财在线 2013.7 逾期提现，目前已经停止给菜钱 网赢天下，2013.7，逾期提现，1.2亿，投资人维权中 黄山资本，2013.9，经营不善，倒闭 现贷网，2013.9，逾期提现 互帮贷，2013.9，逾期提现 立贷网，2013.9，逾期提现 天力贷，2013.10，逾期提现，7000万，刘明武被通缉 东方创投，2013.10，逾期提现，待收过亿，维权中 川信贷，2013.10，逾期提现 宜商贷，2013.10，逾期提现 万利创投，2013.10，逾期提现，待收1700万 保险贷，2013.10，逾期提现，包子团沦陷 银实贷，2013.10，逾期提现，待收3889万，维权中 力合创投，2013.10，逾期提现，待收3900万，布丁团被套 华强财富，2013.10，逾期提现，套牢900万，咳咳团沦陷 盈通投资，2013.10，逾期提现，均为同一老总 浙商365, 2013.10，逾期提现，均为同一老总 汇宝信贷，2013.10，逾期提现，均为同一老总 钰泰财富，2013.10，逾期提现，咳咳团再沦陷 乐网贷，2013.10，逾期提现，总待收2676万，包子团沦陷 福翔创投，2013.10，逾期提现，开业三天跑路 家家贷，2013.10，逾期提现 银鑫贷，2013.10.28，逾期提现 通联贷 2013.10.29 限额提现，12月1日恢复 平海金融 2013.10.30 提现困难，限额提现10% 信网贷 2013.10.30 铜都贷 2013.11.02 待收1亿，老总已被抓捕 乾坤贷 2013.11.03 宝丰创投 2013.11.04 徽煌财富 2013.11.04 招金贷 2013.11.04 鹏城贷 2013.11.04 限制提现每日5万 汇银投资 2013.11.05 都梁创投 2013.11.05 法人变更，须及时更新登记待收，否则资产归零 中联乐银 2013.11.08 逾期提现 益得创投 2013.11.08 逾期提现 3a借贷 2013.11.08 无考察 逾期提现 光大信投 11月9日 逾期提现 宝仕金融 11月11日 资金紧张 暂不提现 德塞财富 2013.11.12 逾期提现 好想贷 2013.11.12 逾期提现 信邦创投 2013.11.12 逾期提现 莲花财富 2013.11.15 正式发布公告2万以上续投90%，提现10% 徽州贷 2013.11.14 提现困难 今鑫财富 2013.11.15 暂停提现，22号1万以下可以提 宝都财富 2013.11.16 因逾期暂停业务，待催收后提现 江城贷 2013.11.16 5000以下资金直接提现，5000以上减去5000后需续投 安客创投 2013.11.19 提现困难，发布公告：续投2、3月标后，利息按月支付，到期后本息可全额提现。 齐商贷 2013.11.20 提前还款，内部整改 阿拉贷 2013.11.20 可按提现金额的12%处理，典型的限提 金银丰 11月21日发布提现处理公告，账户总额在5000以上的，限提1% 凌轩财富 2013.11.21 限制提现，客服消失 。 信博财富 11月22日发布暂时提现公告，限提。 诚宜创投 2013.1125 诚宜创投称短期逾期属正常现象 帮你贷 2013.11.26 限制提现 中州易贷 2013.11.27 公司内部原因 暂停营业 五洲财富 2013.11.28 千万借款逾期 提现压力巨大 禾嘉创投 2013.11.30 大户持盘，比例提现，停业整顿。 沪发贷 2013.12.01 短期延迟提现。 佳通创投 2013.12.03 紧急提现，清盘模式。 高益创投 2013.12.04 公司王总携款40万跑路，还想提现？ 华悦财富 2013.12.05 限制提现，1000元限额。 海发财富 2013.12.07 限制提现，张总视频承诺还款。 及时雨 2013.12.07 提现困难。 正大金融 2013.12.12 提现困难。 天标贷 2013.12.15 提现困难。实行“优先处理续投，其他提现再依次处理”的规则。 怀民贷 2013.12.20 提现困难。 聚众贷 2013.12.25 无法联系，疑跑路 安客创投 2013.12.25 宣布破产 华生贷 2013.12.29 提现困难，法人郭华要求投资人续投支持平台。 广融贷 2014-1-2 限制体现，债权转股权 中贷信创 2014-1-5 限制提现 富豪创投 2014-1-6 提现困难 中银资本-2014-1-15-提现困难 华东理财，2014.1.16，提现困难 贵福财富，2014.1.16 ，提现困难 2012 年跑路企业名单 浙江高盛科技，其老板为洪汉民，浙江桐乡人，在浙江实际控制9家企业，除高盛科技在杭州外，其余企业均在湖州。受危机影响，洪汉民于2012年3月跑路加拿大，总共留下高达18亿元的欠债，其中10亿元为银行贷款。那些为洪汉民旗下公司担保的企业深受重创 .泛鑫保险美女老板陈怡。8月14日下午，泛鑫保险代理公司被曝资金链断裂，公司总经理陈怡携款跑路加拿大，涉及金额近5亿元。12月13日傍晚，娄底市同星米业集团有限公司董事长肖仲望在娄底某小区以跳楼自杀的方式了结了他所欠下的高额民间贷款。这是继11月12日湖南恒盾集团有限公司董事长王检忠跳楼身亡后，湖南连续发生的第二起企业家非正常死亡事件。今年以来，受宏观经济下行影响，不少中小企业资金链出现断裂危机，企业家跑路、中小企业倒闭现象时有发生。如江苏纺织企业聚集地吴江多家企业主跑路；海南泰达拍卖有限公司和海南泰特典当有限公司的老板沈桂林“失踪”；上海玛花纤体以装修停业为名关停多家门店，老板去向不明等。 在江苏吴江、浙江嘉兴等纺织业聚集地，过去半年来已经有超过40名纺织企业老板“跑路”。据纺织企业主介绍，“纺织企业往往会互联互保，一个纺织厂倒下会连累一片。”就在今年12月初，吴江盛泽又有一家大型纺织企业面临倒闭，该企业银行贷款余额约为6亿元。 据海南当地媒体报道，在12月18日有近百名投资人聚集到海南泰达拍卖有限公司和海南泰特典当有限公司办公地讨债，等待这两家公司法人代表、董事长沈桂林的消息。 12月20日浙江信泰集团有限公司(下称信泰集团)董事长胡福林，竟也跟风般失踪了。随后多方信息已证实，胡福林确已失去联系，政府部门已介入处理。这一事件揭开了温州中小企业资金链断裂、民间借贷危机和老板“跑路潮”，成为去年中国实体经济的标志性事件之一。截止10月，据知情人称，自今年年初，温州部分企业出现资金危机以来，已有90多个老板负债出走，目前有3人已返回国内 12月17日大陆最大手机充值公司厦门捷通达网络技术有限公司负责人叶彦荣跑路 2011年 4月初，位于温州龙湾区的江南皮革有限公司董事长黄鹤失踪。目前公开的原因为黄鹤参与大额赌博，欠下巨额赌资出逃…… 4月，温州波特曼咖啡因经营不善，企业主向民间借入高息资金，最终导致资金链断裂出走，相关门店停止经营…… 4月，位于乐清的三旗集团董事长陈福财，因资金链出现困境、企业互保出现问题出走............ 6月初，温州铁通电器合金实业有限公司的股东之一范某出走，估计涉及上千万元民间借贷…… 6月中旬，位于乐清的浙江天石电子公司老板叶某出走，据传叶某欠下7000万巨债无法偿还…… 7月，瑞安的恒茂鞋业老板虞正林出逃。 7月底，位于温州龙湾区海滨街道的巨邦鞋业有限公司老板王某出走，据记者了解其参股一家担保公司，涉及资金约一亿…… 8月24日，位于温州瓯海区的锦潮电器有限公司老板戴某失踪，原因可能是其参与经营的担保公司出了问题…… 8月29日，位于温州鹿城区的耐当劳鞋材有限公司宣布停工，传言老板戴某因欠巨债潜逃… 8月31日，永嘉县温州部落之神鞋业公司老板吴伟华失踪了......... 9月1日，永嘉县蝶梦儿鞋厂老板黄杰失踪了...... 9月9日下午，在龙湾颇有名气的家电老板郑珠菊，郑珠菊共欠债权人现金借款、银行承兑汇票等高达2.8亿元，其中现金1.8亿元，银行承兑汇票1亿元左右“落跑”半个月之后，在温州经济开发区滨海园区被警方抓获 9月13日左右，温州奥米流体设备科技有限公司300名员工得到了一个好消息，往年只发一箱方便面当作中秋福利的老板，今年居然要送全体员工集体去雁荡度假，包括5名保安，费用由公司全包。意想不到的是，当中秋节后他们欢天喜地的游玩归来，却震惊的发现，两天一夜里，公司40多台、总价值上千万的精密加工设备全部不翼而飞，董事长和总经理等负责人也不知所踪。 中秋节期间，温州龙湾新耐宝鞋业老板跑路.......... 中秋节期间，温州唐风制鞋老板黄伯鹤跑路.......... 中秋节期间，温州金竹工业区的星际鞋业老板跑路......... 中秋节期间， 温州 欧霸标准件有限公司老板跑路........... 9月15日左右，浙江祥源钢业、温州宝康不锈钢制品有限公司董事长吴保忠失踪，欠银行贷款2亿多元，民间借贷8000万元，承兑汇票5000万元没有归还。 9月19日，开业仅2年的信河街温州福燕兄弟实业有限公司（燕窝之类饮食的）倒闭，房产易主，老板跑路。老板欠了几个亿的高利贷资金链断了，房产被银行转卖。 9月21日，公司占地200亩，年总产值达10个亿的浙江温州东特不锈钢制造有限公司老板姜国元跑路，一名在东特公司门口揽客的当地驾驶员告诉记者，这两天他看到一些手持借条陆续来东特公司要债的债主，其中有两名债主操温州龙湾当地的口音，一人展示的借条有1600万元，另外一人的借条共计1800多万元，他俩一看到公司搬抢一空的情形，当场腿就软掉了。日前警方正在审理中，涉案金额至少上亿..... 9月22日，温州龙湾 蓝天大药房老总跑路，涉案资金8000万，但是按照龙湾三甲庄泉移民村的居民反映，涉案资金估计超亿，目前老板手机全部关机 9月22日，位于温州瓯海区娄桥工业园区内，厂房占地120亩的，温州最大的眼镜企业浙江信泰集团董事长欠款8亿跑路（具知情人透露，实际欠款达20多亿）.......... 9月23日，今天凌晨4点20分，一名穿粉红衬衣牛仔裤50岁女子从温州人才大厦D单元2610跳下，脑浆粉碎，血贱一地，传言是欠款数千万被追债所逼，现场一片红色血迹公安已到现场处理，为核实此事，温州某网记者赶往现场进行核实。 9月23日，温州顺吉集团（从事包工程的，房产，桥梁，公路等。不过这个的事情的主角不是董事长施顺吉本人，而是他亲戚 主要就是一对夫妻，女施晓洁(董事长的侄女）男刘晓颂(施晓洁的老公，开担保公司，骗来的钱就是交给他的）,在顺吉集团财务部工作(出纳），利用身份以顺吉集团的名义到外面诈骗了13亿，现在他老公的担保公司出了问题，于是债主们全找上顺吉集团了，因为施晓洁是以集团的名义去骗的，因此牵连人数无数。 9月21日刘，9月20施两人已被抓捕。详细情况还在审理中... 9月23日，位于温州仰义的温州繁蕴印刷厂老板又跑路了，现在很多知情人都说，那个欠了2000万无法偿还，在温州人才大厦26楼跳楼死亡的女子与这公司有关，据说这个印刷厂老板欠了三个亿跑路了（目前详情正在审理中）........ 9月24日，早上九点多温州市经济技术开发区的温州正德鞋业有限公司门围着上百人，有员工，可能也有供应商，原来是该鞋厂老板跑路了，该公司占地面积8000平方米，建筑面积5600平方米， 现有职工800多人外贸，皮鞋产品主销欧洲、美国、韩国、非洲等国家。涉案资金多少还不清楚，警方已经介入调查..... 9.25最新消息，温州龙湾泰尔铜业老板跑了 9.25爆料温州又一重量型企业老板《浙江泰尔铜业有限公司》跑路了 名单继续增加中..................... 10月，11月，年底....... 补充内容 (2011-9-24 11:45): 现在目前温州最关注的可能就是温州顺吉集团关于13个亿的事情了，这事情目前调查的已经有了些眉目 温州顺吉集团（从事包工程的，房产，桥梁，公路等。不过这个事情不是董事长施顺吉本人 补充内容 (2011-9-24 11:46): 而是他亲戚 主要就是一对夫妻，女施晓洁(董事长的侄女）男刘晓颂(施晓洁的老公，开担保公司，骗来的钱就是交给他的）,施晓洁在顺吉集团财务部工作(出纳），利用身份以顺吉集团的名义到外面诈骗了13亿，牵连人数无数 补充内容 (2011-9-24 11:46): 他老公的担保公司出了问题，于是债主们全找上顺吉集团了，因为施晓洁是以集团的名义去骗的， 9月21日刘，9月20施两人已被抓捕。大致是这样，详细的还是审理之中，到时肯定会有个说法！! 补充内容 (2011-9-24 16:59): 9月23日，今天凌晨4点20分，一名穿粉红衬衣牛仔裤50岁女子从温州人才大厦D单元2610跳下，脑浆粉碎，血贱一地，传言是欠款数千万被追债所逼，现场一片红色血迹公安已到现场处理，补充内容 (2011-9-24 17:00): 9月23日，位于温州仰义的温州繁蕴印刷厂老板又跑路了，现在很多知情人都说，那个欠了2000万无法偿还，在温州人才大厦26楼跳楼死亡的女子与这公司有关，据说这个印刷厂老板欠了三个亿跑路了（目前详情正在审理中）... 补充内容 (2011-9-24 17:00): 9月24日，早上九点多温州市经济技术开发区的温州正德鞋业有限公司门围着上百人，有员工，可能也有供应商，原来是该鞋厂老板跑路了，该公司占地面积 8000平方米，建筑面积5600平方米， 现有职工800多人外贸,皮鞋产品主销欧洲、美国、韩国、非洲等国家。涉案资金多少还不清楚，警方已经介入调查..... 补充内容 (2011-9-25 18:04): 宁波现在也成了重灾区：宁波唐鹰服饰老板欠债2亿 变卖房产携妻儿出走

How to Safely and Smoothly Purchase from China ?

As an international buyer, you must have experienced following cases and suffered from: late delivery, lower-level quality of products received with defects, quantity received was NOT the same as the order quantity, the supplier did not offer after-sale service and honor the contract at all etc... 　　

Do you have good ways to stop you from above risks in doing business?
Here are some tips for your safe and smooth import business in China: 　　

1. Due Diligence work before placing any orders:
i. Basic Verification (Checking out their Business License and Export License) Every factory or trade company has their own Business License in China, from their real business license, you will be able to find out all their registered information like full company name, registered capital, registration date, legal representative, business scope, company type etc. There are lot of fake business licenses online in China, this is why you have to contact local officials for verification before placing any orders, if you know nothing about Chinese, you can also try STIN Basic Verification service.

ii. Factory Inspection and Auditing
 If your order is very large or if you’re looking for a long term or OEM factory in China, you’d better visit and audit their qualifications first before placing any order. Factory Inspection or Auditing Service is a kind of detailed verification service. Around 85% of the Chinese trade companies or agents online or at local trade fairs would disguise as a real factory in order to obtain big orders. The purpose of any factory auditing or inspection services is to disclose following information regarding their supplier: The full registered information; Management level;Facilities; Export experience or qualifications; Staff; Quality control measures; R &D;After-sale service measures; Bank credit etc;Typical audits can range from verifying simple business transactions, to full inspection or surveillance of a process or corporate social responsibility etc. If you’d like to save more time, cost and energy etc in China, you can try STIN factory inspection service.

iii. Sampling
  No matter how big your order it is, confirming the quality of samples is a safe way to do business in China. With the sample at hand, you can easily check out their quality levels, raw materials, labels, package, technical specifications, descriptions, application etc, but for some professional scammers, they will use ‘high quality samples’, then use worse raw materials and produce the lower-level quality products during the mass production. This is rare but many cases did happen before.This is why more and more big buyers asking STIN to check the sample, keep the sample and inspect the order quality with the samples confirmed in China in person. Here is the link: http://www.chinabizservices.com/service/Management/Sampling_Inspection_Service/ 

iv. Formal Contract Draft
 China is not an English speaking country and all the legal documents shall be presented in Chinese, so when your order is very large, you’d better use bilingual Purchase or Sales Contract in China. All the order details, package, payment terms, lead time and after-sale services etc shall be clearly stipulated in the contract for any large orders. Also please note that some professional scammers use ‘fake’ company chop or seal in the contract, so you’re suggested to ask an local Chinese expert to proofread and translate the contract first before any signature.

2. Due Diligence work during production
 i. During-production Quality Control Inspection
 The purpose of any During-production QC Inspection is mainly to check the raw material quality, raw material stock, production QC standards, semi-products and other potential QC risks at the factory for the clients worldwide, this work can be carried out when the order is 30-50% completed in order to avoid REWORK on the whole order later. With this inspection the buyer can trace the lead time on time in China, if you’re not able to do it in person, you can try STIN QC Inspection Service. 

 ii. Pre-shipment Quality Control Inspection
 After the during-production QC inspection, a Pre-shipment QC inspection service is very necessary for large order before delivery in China. The purpose of any Pre-production QC Inspection is mainly to check the finished product and all the order details (workmanship, quality, quantity, documents,labels, shipping marks etc.). Most of the buyers use ‘pre-shipment QC inspection’ service to protect their interests before delivery in China: http://www.chinabizservices.com/service/Management/Pre_production_QC_Inspection_Se/ 　　
Normally for 99% of the orders, you can only book ONE quality control inspection service, say, pre-shipment QC inspection service, to protect your interests in the factory and it is unnecessary to book two inspection services for one order but some very big orders are exceptional.

3. Due Diligence work after you pay the supplier
 i. On-site Loading Process Supervision
 In China most of the factories ask for full payment before loading the goods and sometimes there would be some goods missing during the loading process in China. So for some special orders, an on-site loading process supervision service is necessary, Loading Process Supervision Service means the inspector shall go to the factory's warehouse together with the shipper, overseeing the process of loading on behalf of the clients in China after they pay the factory. The purpose of a Supervision of Loading Process is to make sure the factory will deliver the right Quantity or Quality after the buyer pays the order.

 ii. After-sale Service (Order Follow-up) Some factories have no sense of after-sale services in China and in this case all the after-sale services have to be clearly stipulated in the contract before paying the deposit. Resources and copyright: STIN (CHINA) BUSINESS SERVICE CO.，LTD STIN CONSULTING SERVICE IS AIMING TO SAVE YOU MORE AND REDUCE THE RISKS IN YOUR BUSINESS IN CHINA! WWW.CHINABIZSERVICES.COM OR WWW.BIZINCHINA.CC

Benefits of operating business in China

Since its open-door policy of the late 1970s, China has rapidly become a rising global economic power. more and more foreign investors start to do business in China mainly in high-tech, agricultural, forestry, telecommunication and energy industry. China's WTO entry marks a watershed in its ongoing reform and modernization program, seeing the country adapt its legal and regulatory framework of foreign trade and investment in line with its WTO commitments. as a major emerging market which embraces new business opportunities and challengers, foreign investors are more likely to start doing their business in China. The advantages in doing business in China: Major emerging market; Large trained labor pool; Favorable business atmosphere; Dynamic fast-growing economy; Rapidly increasing consumer wealth; Very low employment costs; Furthermore, as a dynamic market and international investors and buyers can find a wide range of quality products at very competitive prices to start their business. for instance, lots of investors start doing business in China in producing textiles, apparel and footwear; raw materials, metals and chemicals; toys and handicrafts; and foodstuffs, among others. Besides the obvious potential for selling consumer goods, China has a requirement for a wide range of agricultural and industrial raw materials, high tech components, capital goods and services. due to the rapid development of the Chinese economy, it offers sellers ample opportunity to place goods in this fast growing economy to expand their worldwide business. many top brand names from across the world can now be found in the local high street of most major Chinese cities. STIN (www.chinabizservices.com) Service is aiming to help you invest in China smoothly with their professional services: Market Survey, Consulting, Biz Investigation, Incorporation Service etc.. Our mission is to save you more and reduce the risks in your business in China!