One of the nations with the fastest economic growth rates in the world, China, is seeing an increase in the use of Background Business Checks. China’s manufacturing, agricultural, and technological sectors are the main drivers of growth. In order to guarantee workplace safety and the caliber of hiring, several participants in these industries have also implemented strict background screening standards.
Background checks have been used in China for a very long time, but they have recently become increasingly significant due to the growing need for labor in many important industries. The most frequent background checks carried out by employers in China are education, past employment, criminal history, and references. Financial probity inspections are common in the financial sector. Drug/medical testing is also carried out in certain industries, such as logistics, healthcare, and transportation.
Tips for vetting Chinese suppliers’ backgrounds
- Pick the proper target.
Do not waste time looking up the company’s details on the trade show booth or in the salesperson’s signature. When it comes time for payments, they might even recommend a different company. Request the name and address of the business that will be listed on the invoice. Or, even better, request a pro forma invoice and check the company name on it (assuming both parties already have a clear notion of the products & cost).
- Recognize dishonest companies
There are two ways to identify dishonest businesses. The first is to inform prospective suppliers that their factories will be audited before any POs are issued, and that their output will then be scrutinized before any shipments are approved. Mention it right away, during the initial conversation or email. It is a warning sign if the supplier rejects it or appears unreliable. The Chinese Supreme Court’s databases can be searched as the second option. Try searching for their company’s Chinese name (in China, not Hong Kong), and see if you can locate it there. You can check to see if they received a term and whether they failed to make good on their damage obligations. Unfortunately, only the Chinese version is available.
- Make effective use of B2B directories and search engines.
When importers have a negative experience, they frequently try to document it online. You will probably find the profiles the supplier created on various B2B directories when you search for the supplier’s company name. Check out the supplier’s business’s addresses and phone numbers. If they are not the same or if the supplier doesn’t answer the phone when you call, he will need to provide an explanation.
- When submitting a sample request, you should verify two items.
Ask for money to be wired to their business bank account if you need to pay for the initial sample charge. They are probably not a serious supplier if they are unable to provide you with such information. Don’t merely provide the supplier your account information if you need to pay the courier fee for sending the samples; instead, request that your courier pick up the samples. By doing so, you can compare the supplier’s address to the one listed on their business registration (which you should have asked for beforehand).