Before doing any business with Chinese companies in China, Indian small and medium enterprises (SMEs) are advised by the Indian embassy in Beijing to follow certain safety measures.
The advise notes that these safety measures are necessary since the Embassy frequently encounters a number of issues that Indian businesses dealing with Chinese firms in China experience.
It is advised by the advisory that Indian companies first confirm the legitimacy of any Chinese entity by writing to the Indian Consulates in Shanghai (hoc.shanghai@mea.gov.in), Guangzhou (com.guangzhou@mea.gov.in), Hong Kong (commerce.hongkong@mea.gov.in), or the Indian Embassy (com.beijing@mea.gov.in, ccom.beijing@mea.gov.in). Within four to five business days, the relevant Mission will reply.
It is strongly advised that Indian enterprises get advice from a corporate Service Company before engaging in any big transactions. This company may furnish a report on the Chinese entity’s corporate transparency, financial soundness, reputation, dependability, and qualifications.
Additionally, the guidance suggests that Indian enterprises get and hold copies of the passport and Resident Identity Card (also known as the Chinese Identity Number) of the Chinese entity’s owner and any other accountable interlocutor(s) before conducting business with them.
The bulk of trade dispute cases, according to the embassy, involve businesses that are registered in the provinces of Shandong, Hebei, Guangdong, Jiangsu, and Zhejiang. As a result, before doing business with enterprises from certain provinces, Indian companies are encouraged to take additional security measures.
The Indian embassy has posted an advise on X that includes several annexure documents that firms should review.
An inventory of common issues that Indian businesses deal with can be found in Annexure 1. It also includes a list of safety measures that Indian businesses should follow when interacting with Chinese organizations. Annexure 3 comprises a list of Chinese entities involved in trade disputes with Indian companies from 2009 to April 2024, while Annexure 2 provides descriptive accounts of the common tactics used by violating Chinese entities.
