Forget for a minute all those dime-a-dozen "guanxi is important in China" guides to making your fortune in the Middle Kingdom. China Law Blog posts an excellent piece on the "China buyer scam" which goes something likes this:
1. International company (big or small) receives an inquiry about their product.
2. Inquiry quickly turns into an order.
3. The Chinese “buyer” invites the foreign firm to China to sign the contract.
4. Unwary seller flies to China (Yunnan, Guangdong and Hainan are among the favorite destinations) for the signing and a big dinner. Buyer wants some cash for the event and/or a “commission” payment to get the deal through in the face of some internal politics, or whatever . . . .
Do read the rest of the piece. It's very insightful and relevant to anybody trying to do business in China.
Thursday, January 18, 2007
A cautionary tale
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