1️⃣ Introduction: Why Due Diligence is Important

🔹 Overview:
Before working with a Chinese business partner, verifying company legitimacy, financial stability, compliance, and reputation is essential to avoid fraud, financial losses, or legal issues.

🔹 Key Due Diligence Questions Covered in This Guide:
✔ Is the company legally registered?
✔ Are they financially stable?
✔ Have they been involved in lawsuits or fraud?
✔ Can I trust their payment terms & contracts?
✔ Are they on any sanction or blacklist?
✔ How can I check their business reputation & past clients?

📌 CTA (Call to Action) Suggestion:
✅ "Need a Business Verification Report? Contact Us!"

2️⃣ Business Legitimacy & Registration

📌 How to Check If a Chinese Company is Legally Registered
✔ Use the National Enterprise Credit Information Publicity System (NECIPS) → http://www.gsxt.gov.cn
✔ Verify their Unified Social Credit Code (USCC) (like a business registration number)
✔ Request a copy of their business license (营业执照)

📌 Red Flags:
❌ No business license
❌ Fake company name mismatch
❌ No physical office address

📌 CTA:
✅ "We Can Verify Any Chinese Company—Get a Report Today!"

3️⃣ Financial Stability & Payment Risks

📌 How to Check a Company’s Financial Status
✔ Ask for their latest audited financial reports
✔ Use Chinese credit bureaus (e.g., Baihang Credit, Qichacha)
✔ Check if they are listed on China’s overdue loan databases

📌 Common Payment Scams to Watch Out For:
❌ Changing bank accounts last minute
❌ Requesting full payment upfront
❌ Fake escrow services

📌 Recommended Safe Payment Methods:
✔ Letter of Credit (L/C)
✔ Escrow services (Alibaba Trade Assurance, Payoneer Escrow)
✔ 30% deposit, 70% after inspection

📌 CTA:
✅ "Check a Supplier’s Financial Risk Before You Pay—Get a Report!"

4️⃣ Supply Chain & Product Quality Risks

📌 How to Verify a Chinese Manufacturer
✔ Visit their factory location (or hire an inspection service)
✔ Request ISO, CE, FDA, or product compliance certificates
✔ Conduct a sample product test before bulk orders

📌 Common Supply Chain Risks:
❌ They claim to be a manufacturer but are only a middleman
❌ Fake compliance certificates
❌ Poor quality control (substituting lower-quality materials)

📌 Recommended Factory Audit Services:
✔ SGS China
✔ Bureau Veritas
✔ TÜV Rheinland

📌 CTA:
✅ "Need a Factory Inspection? We Provide Verification Services!"

5️⃣ Legal & Contractual Concerns

📌 How to Protect Your Business in Contracts
✔ Use a bilingual contract (Chinese & English)
✔ Specify Governing Law (HK, China, or International Arbitration)
✔ Include penalty clauses for breach of contract

📌 Enforcing a Contract in China:
✔ CIETAC Arbitration (China International Economic and Trade Arbitration Commission)
✔ HKIAC (Hong Kong International Arbitration Centre)
✔ Foreign court enforcement via The Hague Convention

📌 Red Flags in Contracts:
❌ Vague payment & delivery terms
❌ No company chop/seal (公章)
❌ Refusing third-party dispute resolution

📌 CTA:
✅ "Need Help Reviewing a Chinese Business Contract? Contact Us!"

6️⃣ Reputation & Compliance Risks

📌 How to Check If a Company Has Lawsuits or Negative Reputation
✔ Search China’s court database for legal disputes → https://wenshu.court.gov.cn/
✔ Look for negative media mentions (e.g., Baidu, Weibo, local news)
✔ Verify if they appear on international sanctions lists (OFAC, EU, UN)

📌 Red Flags:
❌ Listed in China’s "Blacklist" of Dishonest Companies
❌ Negative customer reviews or fraud reports
❌ Connection to politically exposed persons (PEPs)

📌 CTA:
✅ "Check a Company's Reputation Before You Sign Any Deal!"

7️⃣ Logistics & Export Compliance

📌 How to Ensure Your Supplier Can Export Internationally
✔ Verify if they have a valid export license
✔ Confirm compliance with U.S., EU, and international trade laws
✔ Use trusted freight forwarders (DHL, FedEx, SF Express)

📌 Common Export Fraud Risks:
❌ False shipping documents
❌ Customs clearance issues
❌ Unexpected import taxes/duties

📌 CTA:
✅ "Need an Export License Check? Get a Verification Report!"

📌 Conclusion: Conduct Due Diligence Before Doing Business in China

📌 Final Advice:
✅ Always verify company legitimacy, financial status, and contracts
✅ Conduct third-party inspections & background checks
✅ Use safe payment methods & legal protections

📌 Final CTA:
✅ "Need to Verify a Chinese Business Partner? Contact Us for a Due Diligence Report!"