How to check the Chinese partner and secure your business

Before starting business with a Chinese partner, it is better to learn more about his background information to secure your transactions are safe.

First, if the Chinese is an enterprise, it should be registered with the AIC authority in China. You may demand to see its business certificate.

Second, for the regulated industries, the company should hold a license issued by the authority permitting it engage the business in that industry, i. e Advertisement industry, medical industry, food industry, etc.

Third, credit of the partner. You may check the registered capital to see the size of the company. Usually, if a small company makes a large deal, the other party may face bigger risks because the partner may not have the capacity to perform the contract.

Fourth, use some agency to secure your business such as Escrow service. An escrow service is a licensed and regulated company that collects, holds, and sends a buyer's money to a seller according to instructions agreed on by both the buyer and seller. Typically, once the buyer receives and approves the item from the seller within an agreed time frame, the escrow service then sends the payment to the seller.