Indian Embassy in China Issues Advisory for Indian Businesses
The Indian Embassy in China has updated its trade advisory for Indian small and medium enterprises (SMEs) that are doing or planning to do business with Chinese companies. The embassy has advised Indian firms to take note of the advisory and its annexure documents and adopt adequate precautions while dealing with Chinese entities.
In a statement, the Indian Embassy in China said, “The Embassy has regularly come across several problems faced by Indian companies doing business with Chinese entities in China. It is requested that Indian companies take note of this advisory and its annexure documents and adopt adequate precaution while dealing with Chinese entities.”
The advisory recommends that Indian companies write to the Indian Embassy before engaging in business with Chinese companies, especially for large transactions. The embassy has provided contact emails for verification: com.beijing@mea.gov.in, ccom.beijing@mea.gov.in, hoc.shanghai@mea.gov.in, com.guangzhou@mea.gov.in, and commerce.hongkong@mea.gov.in. The respective mission will respond within 4-5 working days.
Annexure 1 of the advisory lists typical problems faced by Indian companies and a checklist of precautions. Annexure 2 describes the common methods used by offending Chinese entities. Annexure 3 lists Chinese entities involved in trade disputes with Indian companies from 2009 to April 2024.
The embassy also advises Indian firms to collect and retain copies of the resident identity card (Chinese identity number) and passport of the proprietor and other responsible interlocutors of the Chinese entity. For large transactions, it is recommended to consult a Business Service Company to get a report on the business transparency, financial health, reputation, reliability, and credentials of the Chinese entity.
The embassy has observed that most trade dispute cases involve companies registered in Shandong, Hebei, Guangdong, Jiangsu, and Zhejiang provinces. Therefore, Indian companies are advised to take extra precautions before trading with companies from these provinces.
Doubts Revealed
Indian Embassy -: The Indian Embassy is the office of the Indian government in another country. It helps Indian citizens and businesses in that country.
China -: China is a large country in East Asia. It is one of India’s neighboring countries.
Advisory -: An advisory is a piece of advice or a warning given by an authority. It helps people make better decisions.
SMEs -: SMEs stands for Small and Medium Enterprises. These are businesses that are not very large but are important for the economy.
Credentials -: Credentials are documents or pieces of information that prove someone is who they say they are or that they are qualified to do something.
Trade disputes -: Trade disputes are disagreements between companies or countries about buying and selling goods or services.
Identity documents -: Identity documents are papers like passports or ID cards that show who a person is.
Business service companies -: Business service companies help other businesses with things like legal advice, accounting, and finding trustworthy partners.
