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Company investigation (too-good-to-be-true cases)

When exporting or importing goods to/from China, you might face the challenge of assessing the authenticity of the Chinese company you are dealing with. The trade council in China can both provide a ‘here and now’ assessment of Chinese companies and a more comprehensive investigation of the authenticity of Chinese companies.

Free of Charge services

The Trade Council seeks to improve everyday life for Danish companies dealing with China.
Unfortunately some Danish companies experience the situation of dealing with an unreliable source. Before placing large orders in China, or accepting large orders from Chinese companies it can be relevant to make sure who you are dealing with.

The Trade Council provides the opportunity for a free of charge assessment of Chinese companies.

How we do it

Our assessment of the authenticity of Chinese companies relies on a variety of information. When getting an inquiry from a Danish company, we ask the company to provide the following background information on the Chinese company.

  • Name of company (preferably with Chinese characters)
  • Address
  • Name of contact person
  • E-mail, telephone numbers etc.
  • Name of company webpage
  • Other relevant information

When we have received the necessary information, we will check the reliability of the company with the Chinese authorities. All Chinese companies must have a business license and most companies should have a certificate of foreign trade rights. Furthermore, we will gather online background information and evaluate the webpage of the company.
Since our research of the company with the Chinese authorities is based on the company name in Chinese, it is crucial that we either receive this information beforehand, or that we are able to find it ourselves based on the information we have been provided with.

Otherwise, it can be too uncertain whether we are actually investigating the right company.
The final assessment will be based on the registration date of the company, business scope, licenses, content of the webpage and the company’s online reputation.

In many cases we can usually provide an assessment which serves as a solid indicator of the authenticity of the Chinese company. However, in some cases ambiguity will appear, and a more comprehensive investigation of the company can be relevant.  

Further investigation

For difficult cases, the Trade Council can offer a more comprehensive investigation. This service falls under our business conditions and will therefore imply a service fee. Usually we charge 5 hours of work equal to DKK 4675. However, there is no fixed price and the final service charge depends on the individual case.

The next step is to contact the company. Here we will ask different questions regarding the company’s background, which a reliable company should be able to answer. Furthermore, we will start an investigation at the regional company registration authorities and at the national Administration for Industry and Commerce of the People’s Republic of China.

Again, the right approach depends on the individual case, and the Trade Council can use different tools in order to evaluate the authenticity of the Chinese company. The right approach will be discussed with the Danish side.

In most cases the authenticity and reliability of the Chinese company is revealed at this stage. However, the Trade Council cannot guarantee that we will succeed in our investigation of the Chinese company. Danish companies are always advised to be careful when dealing with Chinese companies.

Contact

The Danish Consulate General in Chongqing offers to handle any inquiries regarding ‘too-good-to-be-true’ cases. Please contact Anja Villefrance directly or Joachim Hansen with Anja as CC.

Anja Villefrance
E-mail: anjvil@um.dk
Phone: +86 (23) 6372 5162

Joachim Kirkeskov Hansen
E-mail: joakha@um.dk   
Phone: +86 (23) 6399 8339