Ten Best Practices for US Companies Doing Business in China – VI

 You can’t run a credit check in China, how do you conduct Due Diligence?

  1. Always ask for business license, and check the business ID from official government website.  For example, to conduct due diligence on the companies located in Shenzhen, you can check business license information from Shenzhen government website.

All the relevant information is in Chinese.  Please contact us if you need help for due diligence on business license.

  1. To make sure Chinese companies have ISO 9001, UL, ETL, please ask them for identification number and go to the official websites of ISO 9001, UL and ETL to verify the authentication and effectiveness.
  2. To make sure Chinese companies manufacture Energy Star products, please check DOE website.
  3. To make sure the products of Chinese companies meet energy efficiency standard such as lumen output per watt, please ask them to deliver the lab results from DOE authorized labs.
  4. Conduct background checks not only on the companies but also on people you are dealing with. Different persons in the same company may have opposite approaches to doing business.  Talk to the right person who is the decision maker and can get things done.

Make sure that the answers you got are from an independent resource, or you pay third party to conduct due diligence. Contact us for help.

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