Supplier Blacklisting

By | July 28, 2016

On the internet, there are a slew of different examples of scams happening in China and it’s savvy to keep up with these types of scams and triangulate where and how these scams are being conducted. One of the best websites for tracking and posting your own experiences is We spent some time browsing through their posts and found some very valuable information, not only for our business model, but for our customers as well. When conducting business in China, the most important things to be well versed in is: 1. your product. 2. your supplier/buyer and 3. the costs involved. Honestly, a lot of the people/companies posting on were already well versed in their business, and still were scammed. Today, we’re going to take a look at a few of these scams, pick them apart, and see where they could have done better.

Our first scam comes from someone requesting for product on Alibaba: “Posted an RFP on Alibaba website for 1,000 USB drives and was contacted by this company [] with a quote. Requested invoice and placed order. Sent wire transfer for $2,550 US on June 27. Transfer was collected at destination on June 30. Vendor continued responding to emails for one week, saying they had not yet received the wire. Then suddenly all correspondence stopped.”

The amount of times we here at China Business Check have heard of this type of scam is astounding. Someone makes a product request on some public business forum, a small company responds with a believable and savvy price, but in the end the product never reaches the buyer! And then, to really agitate the buyer the scammer will claim they “never received any wire transfer”, which could further implicate the buyer making them lose even more money. So, how do we deal with situations like this? The only way we can; never get into such a situation in the first place. When dealing with any business in China, the number one thing is to ask for the seller to verify themselves. Ask for their business registration number, their organization code, a scan of their business license, and a picture of the product with the date and their company name in the photo. When sending money, make sure the bank account information is synonymous with their business name and business scope. This type of verification is essential to eliminate any chances lowly scammers have of taking your money away. Once you have this information, come to and cross reference your information with records from our database. We have close to thirty years of Chinese business records in our database and are an Official business service provider of the US Department of Commerce!

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