Govt cautions SMEs on trade with China

New Delhi: Indian embassy in Beijing has issued an advisory asking Indian small and medium enterprises (SMEs) to take certain precautions before doing any business with Chinese companies in China.

The advisory states that these precautions are needed as the Embassy has regularly come across several problems faced by Indian companies doing business with Chinese entities in China.

The advisory recommends that before doing business with any Chinese entity, Indian companies write to the Indian Embassy (com.beijing@mea.gov.in, ccom.beijing@mea.gov.in) or Indian Consulates at Shanghai (hoc.shanghai@mea.gov.in), Guangzhou (com.guangzhou@mea.gov.in) and Hong Kong (commerce.hongkong@mea.gov.in) to verify the credentials of the entity. The respective Mission will respond in 4-5 working days.

In case of large transactions, it is highly recommended that Indian companies consult a Business Service Company, which can provide a report on the business transparency, financial health, reputation, reliability and credentials of the Chinese entity, the advisory further states.