In the tide of globalization, China has become a crucial force on the world trade stage. Currently, China is the main trading partner of more than 150 countries and regions, and its total volume of goods trade has ranked first in the world for seven consecutive years. In 2024, China's total import and export trade volume reached $5.93683 trillion. Such a huge trade volume undoubtedly brings boundless opportunities to global business activities. However, at the same time, it also harbors numerous risks.
Throughout my career, I have handled numerous trade fraud cases, which mainly concentrate in fields such as chemicals, engineering machinery and equipment, and steel. Based on these experiences, I would like to share some insights and advice to help you better protect your rights and interests in international trade.
When conducting transactions with an unfamiliar supplier, it is essential to seek the assistance of a professional lawyer to perform the following tasks:
a. Conduct a comprehensive background check on the supplier, including details such as the composition of shareholders, registered address, registered capital, as well as any litigation records or illegal records. This step is of utmost importance. An experienced and qualified lawyer, leveraging their professional knowledge and expertise, can generally determine whether the supplier is suspected of fraud or has the capabilities to engage in international trade.
b. Draft contracts meticulously to safeguard your legitimate rights and interests to the greatest extent possible. A well-drafted and comprehensive contract serves as a vital cornerstone for transaction security.
c. If you find a supplier through trading platforms such as alibaba.com, it is advisable to conduct all payments through the platform rather than making private remittances to the supplier. By doing so, even if disputes arise in the future, such as quality issues, you can firmly maintain the initiative.
If you can effectively implement the above measures, it can be said that you have successfully filtered out 90% of the risks associated with the transaction.
Regrettably, in many trade disputes or trade fraud cases, many parties fail to adhere to these crucial points.
What should you do if a trade dispute or trade fraud unfortunately occurs? At this point, you still need a professional and experienced Chinese lawyer. Here are my specific recommendations:
a. If you discover serious quality problems or counterfeit products upon receiving the goods, it is necessary to engage a professional inspection company to issue a professional inspection report to prove the quality issues. This report is indispensable for subsequent litigation procedures or reporting to the police.
b. Invite a Chinese lawyer to intervene promptly. The lawyer will provide you with professional legal advice based on the specific circumstances, send a lawyer's letter, and negotiate with the other party on your behalf.
c. If the negotiation with the fraudster fails to achieve the desired results, it is essential to carefully prepare relevant evidence to fully prepare for litigation or reporting to the police. It should be noted that litigation or reporting to the police is not a quick process. It requires a significant investment of energy and meticulous attention to detail, and it also consumes a considerable amount of time.
Nevertheless, it is undeniably the only effective way to protect your rights and interests and recover losses.
Please always keep in mind that hiring a professional lawyer to ensure transaction security is of paramount importance. Because once you encounter trade disputes or fraud, the time and financial costs you will incur can be extremely high.
