Where are some of the “warning” signs of a Chinese scam?
Although China’s booming economy offers great opportunities for U.S. companies, businesses looking to invest or export to any foreign country should always exercise due diligence. Several exporters recently reported unsolicited buyer interest from China and elsewhere that turned out to be bogus. While not all unsolicited interest is fraudulent, American companies should always be cautious when considering such situations. Requests for advance payments, samples or prototypes to be sent in advance of sales negotiations, cash for a banquet far in excess of typical costs, cash for travel expenses for an “essential” U.S. meeting, all pose red flags that a business opportunity may be fraudulent. To report a suspicious business offer from China, contact your local US Export Assistance Center or the China Business Information Center at (chinabic@mail.doc.gov).
