Effective Tips on Avoiding China Supplier Scams
For decades, China has been ruling the world of trade and commerce as a giant supplier of raw materials and goods for the global manufacturing industry. This country provides ample scopes for the importers; but, at the same time, no one can overlook the predominance of fraud suppliers in China. It is a burning reality, and the importers must guard their businesses while thinking about China product sourcing. This blog has discussed some important facts about supplier scams in China and shared a few tips on how to avoid these scams.
What is considered fraud in sourcing?
When a supplier intentionally deviates from the agreement, it is called a fraudulent case. For instance, if a supplier delivers materials that do not meet the agreed-upon requirements and standards, it is a fraud case. Sometimes, frauds pretend as reliable manufacturers when they are running a trading company. If they are making this false claim, they will also lie about other facts. Many importers hire experienced China sourcing agents to avoid these fake manufacturers.
Types of supplier scams in China
Be it a small lie or big deceit, supplier scams of different types are frequent in China. Discussed below are some common fraud cases that you can find in China:
- Supplying poor quality wrong goods
If your suppliers provide you with cheap and low-quality goods that fail to meet quality standards or the samples they provided, you can consider yourself a victim or a fraudulent case. You need to remember that not all Chinese suppliers are genuine.
- Counterfeit materials
Often foreign businesses end up contracting with counterfeit materials. If you sell products made of these materials, you may face a legal threat.
Apart from these two types of fraudulent cases, some other cases include breaching acts, fake manufacturers, late delivery, and transparency scams.
How to avoid China supply scams?
Keep an eye on the warning signs
Listed below are some warning signs that you need to consider:
- The suppliers are not ready to show their licenses or legal documents
- They are putting pressure on you for closing the deal as soon as possible and transferring an initial deposit
- Their inconsistency and lack of communication
- They are not sending their samples
- They are shifting the mode of payment or asking you for transferring the money to a different bank account
- They have a vague website having no contact information
While providing services, reliable China sourcing agents consider these warnings before choosing a supplier for their clients.
Verify the suppliers’ claims again and again
Not every claim made by a supplier needs to be right. You need to verify whether their claims are genuine. You must conduct thorough research on the suppliers you are looking for; after all, it is a matter of huge investment.
Map out a contract
A contract can act as a shield and give you protection from fraud. When it comes to China product sourcing, you need to prepare a foolproof contract with the help of a legal advisor.
Do not forget to consider the signs of fraudulent cases and discussed tips to avoid China supply scams.