Chinese Business Scams | China Fever

Chinese Dumplings Something like this probably happened.

Employee walks in to the office of the CEO, forgetting to knock due to all the excitement.

Employee:

“Mr. CEO, I just got an email from a huge Chinese company and they want us to do business with them and soon”

The CEO’s blood pressure, hearing these words is rising. New energy seems to be flowing into his mind. This is his chance to expand, a chance to break open a new market, sell to multi-million consumers, lift his career to the next level.
But he keeps his cool.

CEO:

“What do they want? Do we know that company”

Employee:

“They invite is to come over to Guangzhou and sign the contract. The amounts they are talking about are really huge. No surprise, as they have so many people there”

I never heard of them, but heck, this is a real opportunity

The employee chuckles after finishing this last sentence, this is really a no-brainer.

The CEO ponders a bit, he doesn’t want to show the employee he would rather be there yesterday.

CEO:

Ok, book the tickets, get me that book, Murdoch recommended, what’s it called , oh right “10 Tips For Guaranteed Success in China”, make some business cards with those characters and buy some presents.

A couple of days later they are in the plane. They had to postpone one day as the CEO went to the plastic surgeon to have an eternal smile fixed on his face. Always look friendly, he read.

Landed they find an impressive delegation waiting for them. Wow, the CEO thinks, these guys are serious. Outside a Buick is ready to bring them to their 7 star hotel after which they are invited to an enormous banquet.

No business is talked yet, he knows about that, first get to know each other. He finally though has the chance to exchange business cards and he feels they really appreciate the fact he studies theirs for at least 5 minutes each.

The next day they visit one of the top notch offices of the Chinese side. Again, Wow.

That evening he gets into a really good talk with the Chinese CEO. The translator is a lovely girl he wouldn’t mind, no he is here for the deal.

The Chinese CEO explains that they are impressed by his company, want to buy whatever he has in stock. The Chinese CEO also explains that as a proof of faith from the foreigners side they like them to contribute to some of the cost they have made.

It seems a bit much, he thinks, but on the other hand it’s normal. This way the Chinese side will know that we are serious on doing business.

The CEO orders the employee to have a considerable amount of money transferred.

This is China, this is how it works, the deal is as rock hard as steel and if this it what it takes to tie up the loose ends, please. Compared what we’ll make on the order it’s peanuts anyway.

JiaoziA contract is signed and on arrival back in Foreign town, the board is waiting for him to congratulate him. We’re in, we’re doing business with China. Who ever said that doing business there is not easy is a fool.

A week goes by and they haven’t heard from the Chinese side as agreed. That’s China, he thinks, give them some time. Another week goes by and the CEO asks the employee to give them a call.

The Employee calls and hears.

“Sorry, the number you dialed does not exist”

The above is fiction but based on a story in Dutch newspaper based on a warning on the website of the Dutch embassy (only in Dutch)

Apparently they have realized in the provinces Guangdong, Yunnan, Henan and Guanxi that there is a China fever going on. Everything foreign wants a piece of the dumpling and will throw overboard any lesson they learned during their MBA.

In a way it makes me smile.

Sources: Volkskrant (Dutch), Embassy of the Netherlands (Dutch)
A related story about doing business in China

Pictures: Dumpling 1 , Dumpling 2

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60 Responses to “Chinese Business Scams | China Fever”

  1. JMF
    September 17th, 2006 01:38
    1

    Don’t laugh..It happened to me in Xi’an, Shaanxi almost exactly as in your story. I realised something was up when they started asking for presents “because this is the custom in China”. I said that our company policy is not to give large value presents. When they finally understood that I was not going to back down, they made an excuse to cancel the evening’s entertainment and dumped me back at my hotel. So I only lost my airfare, hotel costs and a few days of my time.
    The interesting thing about my experience was that they had a professional internet page, nice looking documentation etc, a presence on Alibaba.Com etc, etc. I still wonder whether they actually are a real company that just scams on the side or not…
    The only way to be safe is to attach a “company policy statement” onto the bottom of your e-mails stating clearly that your company does not pay bribes or give away expensive gifts. Also, ask them to meet you halfway, or even to come to your country, rather than you visiting them. If they start to talk about gifts, tell them to get stuffed.
    Good luck!

  2. Keith Hatswell
    October 18th, 2006 16:27
    2

    Unfortunately this same thing happened to us, almost exactly as the sample story stated. We were asked to travel to a company called Kunze Trading (Henan Kunze Import and Export Co., Ltd.) in Zhengzhou, China. We failed to question the situation due to our excitement and the fact we have done several jobs in Zhengzhou, China. We made the trip, signed a “contract” and were then asked to purchase two expensive ($2000) gifts, which we only purchased one and explained it was a substantial amount of money for our size company. We lost the price of the one gift, hotel, airfare, and a couple of days. When they ask for gifts is it always a scam or is it sometimes just custom? Has anyone ever heard of this company?

  3. China Business Scam Follow Up | Shanghai China Snippets
    October 21st, 2006 07:02
    3

    Read the stories of China Business Scam, and if you have any of yourself, feel free to share. …

  4. Jake Danger
    October 22nd, 2006 14:12
    4

    Interestingly, I am living in Zhengzhou now. In case you should consider hiring a lawyer over that rip-off, check out the latest post on the China Law Blog for a story on a phony fly-by-night law firm.

    The scam I would warn of is the old “get you drunk and then have you sign a contract” trick. Beware, they will always place a very friendly Chinese honey next to you on those occasions. So keep your eye on the ball…

  5. Stephan Egger
    February 9th, 2007 04:53
    5

    It happened to us exactly the same way as in the story. We were contacted in November 2006 by two different companies asking for a rather large quantity of goods. I was impressed by the offices and the positive relationshpip during the visit. The contracts were good and they signed quickly. After returning to Switzerland the pre-payment never arrived and the telephone lines were cut off. We didn’t pay for large presents and I think their trick might be to get some illegal credits with the contracs. The two companies are Yunnan Jinxida Import & Export Co. Ltd at Kunming (www.ynjxd.com) and Shenzhen Xiyida Invest Co. Ltd. at shenzhen (www.szxinyida.com)

  6. Mike McCracken
    May 9th, 2007 00:48
    6

    I am an English teacher in China. Here are some scams that I was involved with personally.

    Warning to foreigners and tourist:
    Price gouging is allowed in China. Guys and girls will ask you if you like to go to a club. Do not go! They sit you down in a room and start bringing you drinks food and then try to charge you about 3,000 Yuan RMB. This is over $300. They have two or three big Chinese trying to force you to pay.
    This also happens to guys offered to see a lady”. They bring guys to a room, have 2 or more ladies and try to start by saying that the drinks for the lady are only 60 Yuan RMB. Then they bring you food and try to charge you more than 3,000 Yuan RMB and that guy doesn’t even get to take the lady for a massage or more as promised. This is one of the biggest scam for guys.
    There is the tourist scam. Your are charged one price and when you get to where you are going, they try to get more money from you. What happened to me an two guys from India was that when I took the tour to the great wall, the guide tried to get another 120 Yuan RMB. I told him that I already paid and will not pay any more. I told him that I am an American and what they are doing is against the law in America and I will not be ripped off. I yelled and argued to give me all my money back and take me back to the hotel. He finially let me in. Then he tried another time and I yelled that I am American again and told him that we fight for what is right. Then I yelled like George Bush. I am not going to pay anymore because I already paid. He finially gave up because he thought that I was crazy.
    The two India guys gave the tour guide a $100 chashiers check that was not signed. They did not sign the check and scammed the tour guide out of all the money. I told him that is what he gets for trying to cheat an american and forgieners. It is great when someone who tries to cheat people out of money gets cheated himself.
    Another scam Chinese try to pull on tourist is walking up and asking them to have a look at what they have to sell. They bring tourists to a special room and over charge tourist at least three or four times the amount of what ever is being sold
    Chinese are not shy to walk up and try to sell you things. If you say, “No” they will fallow you and hold you by the arm so that you can’t get away. They are not good at taking no for an answer. The best thing to do is to keep walking and not say a word.
    There is also an art scam where guys and girls act like students and get you to just look at Paintings they say is their work. These same paintings are in all the students displays. They can’t all paint the same.
    Having things that the Chinese on the streets are trying to sell does not stop them from trying to sell you another one and they are just as persistant as if you did not have any of what they are trying to sell.
    Always remember to bargain with the Chinese on the streets and even the stands on the streets or you will pay a lot more than you have to. The standard rule is to offer about half or less of what they are trying to sell something for.
    Chinese also take cuts anywhere there is a line. I was at KFC and a Chinese walked up in front of me and tried to order. I yelled at him and told him to get in the back of the line and wait your turn. I told him that I am an American and that is considered rude and Americans will not put up with it. The Chinese man who took cuts told me that he was sorry and walked away.
    Watch out for the beggers. They will follow you and tap you on the arm with their cup and follow you if you try to walk away. I found something that seems to work well. Hit their cup and tell them to get out of here in a harse voice. It wouldn’t be so bad if there was only one begger but there are always teams of them. If they see you give money to one and you will have another four or five come up and ask you for money after that.
    A lot of tourist consider Chinese rude and even harass people. Word of mouth is getting out about the Chinese. Not all Chinese are ill mannered. Most Chinese have pretty well mannered and nice. It is the few listed above that is going to give China a bad reputition.

    Prediction of what will happen in China in the near future:
    China is now a developing country. They are even starting to open their doors to the rest of the world. With this, foriegners will bring in their good and bad to China. We will bring in our crimes, tricks and bad ways. We will also bring in our goodness too like our religion, holidays, laws and manners.
    China has many great places to visit and a lot of culture once you get over how different they are in life and manners.

  7. J. Hunter
    May 30th, 2007 14:23
    7

    Thought you might be interested in reading an article about just such a scam that happened to our company. We (the Legal Department) tried to convince our Sales group that the contract was a scam, but they had to learn their lesson the hard way!! The scam company was called Shenzhen Jinfengying Industry Co. Ltd.

    http://www.associatedcontent.com/article/258550/shenzhen_jinfengying_industry_co_ltd.html

  8. AFH
    August 27th, 2007 19:39
    8

    Well I wish I read all of this last MONDAY!!

    My business partner and I just spent 4 days in Xi’an City, in the Shaanxi Province of China. In hopes of a very large sale with a company that contacted us via Kompass. The company is called Shaanxi Jincang Import and Export Trade Co., Ltd.-http://www.sxjincang.com/ynen/index.html

    Funny thier website looks exactly like one mentioned in a previous comment posted but with a different company name! (Yunnan Jinxida Import & Export Co. Ltd)
    We were a little concerned when they asked us to come in on Saturday morning to sign the contract. It was Friday night when we noticed in the contract negotiations that they wanted us to pay a $9,000 “Quality Guarantee” on our product sample. In addition to presenting their managers with a “gift” which was written down on paper by the translater as “cash in a small box.” Our lawyers warned us not to sign anything until we returned and that the $9,000 seemed very strange. So we took his advice.

    On the upside, they did take us out for dinner on both Friday and Saturday, and they drove us to see the Terra Cotta Warriors and they paid for all of that. So our company is only out $6,600 (plane tickets, travel, hotel) but at least we got to visit China. Seriously though, somebody needs to stop these people from scamming companies around the world!

  9. JB
    September 17th, 2007 23:09
    9

    Looked too good to be true

    Hello Jean,

    Ok i can tell you that our currently business is to find cooperaters from oversea. Our major trading products are foods and cosmtics which have high quality and of great demands in uChina.

    As you know our China is developing faster and faster. The living standred is higher day by day. And people desire for new things especially the import products. That why we require that the partners we chose must not have their products sold in China before. Then with our partners together, we will do our best to open the Chinese markets and established the new brand for our new products. We truely have great faith in your products, and Professional as we both are, i think it will be very easy for us to reach our aim.

    About the oversea customers, of course we have many from different countries around the world. But i can’t tell you now. Because it our commercial secret. hope you can understand. But after you have signed the contract with us in our company, we can be the communicate bridge and to help you get the information you need.

    If you have any questions, pls don’t hesitate to let us know.

    best wishes,
    Abby
    .
    写道:
    锘?lt;!DOCTYPE HTML PUBLIC “-//W3C//DTD HTML 4.0 Transitional//EN”>
    Hi Abby,

    Could you please provide me with references on your current business?

    Could you give me a list of overseas customers you are dealing with?

    Best regards,


    Jean-Baptiste (JB) Weiler
    Export & Regional Sales Manager

    ——————————————————————————–
    From: Abby
    Sent: Sunday, September 16, 2007 9:07 PM
    To: JB Weiler
    Subject: 鍥炲锛?RE: 閸ョ偛顦查敍?Invitation to China

    Hi Jean,

    I’d like to suggeat that the reason that we invite you to China is to finalized the formal order and the contract and to talk about how to establish the brand in China with our president.

    As you know, Our company always does not make one list business, because must set up a brand to need to spend our massive time, Money manpower and physical resource. Bilateral face-to-face discussion some questions need compared to send MAIL to come officially moreover detailed.

    I think both of us has pay much attention to this case. If you still stick to your opinion, well let’s stop wasting eachother’s time. I really don’t want our effotrs to be wasted.

    best wishes,
    Abby

    JB Weiler 鍐欓亾锛?lt;/DIV>
    Hi Abby,

    At this point, I will not be traveling to China for face to face meeting.

    Our company existed since 1993, we have the top selling potato chips lines in Japan and do well in Hong Kong and Taiwan.

    We are ready to ship your orders once formal order is received and paid. Once we have shipped orders and you have established the brand in China, I will be happy to come to China.

    Since we have no sales in China, I would be happy to give you the exclusive on the market.

    Best regards,


    Jean-Baptiste (JB) Weiler

    ——————————————————————————–
    From: Abby
    Sent: Thursday, September 13, 2007 9:30 PM
    To: JB Weiler
    Subject: 鍥炲锛?Invitation to China

    Dear Jean,

    Thank you for your invitation.

    Here i’d like to know what do you mean by “Prior to visiting your company in China, we will need to have some business established” ? After I have placed the primary order to you and sent you our stylebook of the contract. I think the primary business we have established. Now we only lack one step to built our final busniss. It’s that you can come to us to sign the final contract.

    As i have told you that Our company does not accept besides the signature formal contract any form contract. Contract signs which in China, needs bilateral President the face-to-face signature to be able to be effective personally, therefore, why this is we invites you to come the reason which our China signs a treaty.

    Now the only thing we want you to do is that you come to us to have a face to face talk with our president. And we want you to know more about Chinese markets and our Chinese’s needs, according to the Chinese people life level to develop some new products for our contract order. Also you can make sure whether we have the actual strenth to cooperate with you to help you open Chinese markets.

    The same, after this yours inspection, we also can arrive your country to carry on the visit and the inspection, will prepare for our next long-term cooperation.

    We have the enormous interest truly to your product.In second order form time, we may be you in China’s sole agents.

    I hope you can understand our sincerity and make a wise decision soon.

    Have a nice day!
    Abby

    鍐欓亾锛?lt;/DIV>
    Dear Abby,

    Prior to visiting your company in China, we will need to have some business established

    You are of course welcome in the US to visit the plant.

    Let me know how you want us to further proceed.

    Best regards,


    Jean-Baptiste (JB) Weiler

  10. John K
    September 20th, 2007 18:39
    10

    I believe this is a scam it looks and reads like all the others. read it and be aware.

    THEIR EMAIL ADDRESS: zgynkxxx@126.com *Reply to this address
    Contact Person: Mr yang
    Contact Phone No: 86–xxxxxxx
    Country: China
    Message: We, Kunming Ouaosi company is a trading company. We often order various goods for our respected customers in China, and we are
    interterested in your machines .So , if you are interested in exporting your products into China,we want to buy some.

    Please contact with us and inform us your website, then we will give our great help to your company.

    In addition, if you had office in China, please inform us, so that we can contact the people of your
    office in China directly. Choosing us will be a good choice!

    Lets make the profits and create the future hand in hand!

    Ouaosi Trading Company, Room312, Guo Tai Building ,No.474,East
    Ring
    Road,Yunnan province,Kunming,China
    [edited out the phone number etc]

    Sincerely,
    Mr. Yang

  11. Jeff
    September 20th, 2007 20:01
    11

    Oh Wow…I WISH I READ THIS LAST MONTH….I’m In the 24 th day of the 25 days necessary to transfer my huge first payment. It happened just as you said. A big order and a demand for you to come to their country. You think its normal because they can’t get out. They guaranteed prepayment how could you go wrong? So I went to guyang capital of a southern province. Howard Johnsons was 5 star and nice. My “new friends” had me picked up at the airport. We did our big contract signing upstairs in a building that was on their corporate website. Interesting deal they emphasized being friends and trust is real important right. So then they want me to share the expense of the wiring fee. 3888 R&B or about $1800. I payed and my attorney friend who I bought said you got shook down dude. I was like this is Vegas in a different way. I’ve had friends rooting for me the last month as we wait for funds that won’t show. Its amazing that they will spend months and drag you over just to rob you politely for change that looks like your airfare. Hope you don’t get scammed like this.

  12. Shanghai
    September 20th, 2007 22:27
    12

    @John K

    It’s hard to say whether your mail is a scam. At first sight it seems a genuine email showing interest in your products and they actually ask if you have an office in China to deal with which, if you have, would make a potential con a bit harder.

    As much as goes wrong, there is also decent business done here so not every mail is bad intended.

  13. BioX
    October 16th, 2007 23:07
    13

    Have anyone heard of this company - Shuangji International Material Imports and Exports Company located at Hutou Heilongjiang Province China. They said they are the purchasing centre on behalf of their HQ in Russia. Their website is www.shuangjigm.com.

    They contacted our company in Sep 2007 and later issue us PO for purchase a reasonable amount of goods. They also agree to T/T in full for the first deal.

    They also invite us to go over to Dalian to sign the contract saying their CEO from Russia HQ will be in Dalian for meeting around 17th Oct - 31st Oct. The CEO and all the officials like to know more about our products, company and future cooperation. Once the contract is signed, then we can expect to receive payment after we return to Singapore.

    Is this another business scam? If it is, we hope this will alert all businessmen to exercise extra cautious when dealing with such scam.

  14. tracey
    June 5th, 2008 22:20
    14

    I like so many others have been scammed. Not to the financial extent of those posted above. I am a sole trader, internet shop. I was scammed for $655.84AU by an offer to supply goods. Afer money was transfered to pay for the order, they refused contact. Needless to say, I have not and will not receive my order. I have all the info they gave me, and the transfer receipt (which requested ID for collection of money), their email addresses etc. How do I go about getting my money back? I’d love to scam them back! I’ve contacted online fraud dept. but they don’t hold much hope. Surely there is another way. If only we had contacts in China who would follow up on our behalves.

  15. patricia
    June 28th, 2008 04:20
    15

    hi all

    Travel warning. There has been lots of reports of robbery, scams in Shanghai. Many of tourists have been forcibly extorted money and they were forced to use their credit cards to pay more extortion money. Many of these syndicates operate at Nanjing Road in Shanghai and kidnap tourists and drive them to an unfamiliar place and in some instances simply rob them on the spot.

    These syndicates bring along a mobile VISA/credit card terminal to swipe your credit cards. Please beware and warn your friends to be extra careful when visiting China and do not talk to strangers. Many of these syndicates operate in groups. Usually one innocent looking man or lady will approach you asking if you want to visit tourist sites or cafe, pubs or discos or karaokes. Next , a group will approach you saying that your friend owes them 10000USD or more. Then they will extort money. Be careful

    The syndicates register chinese travel agencies which are fictitious such as 忠成船空 Zhong Chen Travel .

    One real case is
    Merchant Number : 103290047220088
    Terminal Number : 75446602

    You should all report to the police and credit card companies so that these crooks will be put to justice

  16. Andy
    July 16th, 2008 07:20
    16

    Here’s another one…
    We were contacted by ZHUHAI NONGZHIXUAN TRADE & DEVELOPMENT CO.,LTD to supply 200 flat pack houses for earthquake victims.
    We duly submitted a quotation, and were surprised to receive an order and ‘contract’ to supply them. The alarm bells rang as; 1) we had not submitted a full specification for the buildings at this stage, 2) the contract was surprising lenient on us, 3) they did not question the price, 4) They wanted us to go to China to sign.
    We decided to check them out through the CBBC (China-Britain Business Council) in London who reported back to us that this company had been involved in exactly the same scams you have been discussing here.
    An email was sent to the company telling them that we had checked them out through the CBBC and challenging them to the data held on them – no reply.
    As a further check, I tried to contact the company via their website contact page http://www.zhuhainongzhixuan.com.cn/ requesting references – no reply.
    The web site looks professional and at the date of writing, still active.
    Avoid at all costs!
    The CBBC has lots of useful information on doing business in China: http://www.cbbc.org/ it’s worth checking out.
    Good luck guys.

  17. Italo
    August 6th, 2008 10:26
    17

    Hi.
    As Andy, our company has been approached by ZHUAHI NONGZHIXUAN TRADE & DEVELOPMENT CO., LTD. for a very big order.
    They were all charged (packaging, insurance, customs, transport, ..) but we were obliged to pay 50% of notarial fees (about 2.000 Euro). This was very strange, but our mind was occupied to think about the great opportunity that we had happened and saw no more. We had an extensive correspondence: they also sent us technical drawings and we developed samples. After we have read the letter from Andy, we requested explanations and references, but they did not reply. The Chinese government should take measures because this phenomenon casts a bad light on them. Please be careful.

  18. Shaun
    August 7th, 2008 08:05
    18

    Thanks to my Partner in India and also looking at this site I am now so happy that I can psopone my meeting with the company ZHUAHI NONGZHIXUAN TRADE & DEVELOPMENT CO., LTD. A €2 million order sounded good business. I was due to fly out to Hong Kong on the 11th August 2008. Have not booked my flight but was supposed to go last month but due to ill health this had to be postponed. All together I have lost our on £500.00.

    I have mailed this company to state that i have booked the flight. The contract states that they want a notarization fee to be paid and as your earlier messages show possibly expensive gifts. I have asked this company to pay the 50% of the contract up front in order not to delay the so called order as it would genuinly take 6 weeks to prepare the raw materials in question. Also asked them about the fee that is to be paid and how much it is likely to be. I have stated to them that if they let me know the fee i will bring it with me in cash. Time will tell!! Thanks for this, I have just been saved!!!

  19. David Green
    September 21st, 2008 12:54
    19

    In July 2008 we were also approached by Zhuhai Nongzhixuan Trade & Development Co Ltd, Mr Chen and Mr Yu De Jiang to supply chocolates to the value of £521,000 (Pounds Sterling).

    Checks with Credit Reference Agencies showed they had no track record as they had only been trading since 2007.

    The usual brochures and samples were sent, prices were not queried and I was asked to sign a contract in which payment for the goods would be 50% up-front and 50% on an L/C basis.

    As I had already planned a Far East trip in August I arranged to visit Zhuhai and go to their offices. I was booked a hotel for the night and was to be collected at the port. Unfortunately, or maybe with hindsight, fortunately, a typhoon hit Hong Kong and I was forced to change my plans, delay my visit and declined to stay overnight on 9th August 2008.

    I had a brief meeting with the two gentlemen above and a translator. There was no negotiation on price, they had no idea about Food Legislation, they needed the contract signed there and then to raise the money for the order. A Notarisation Fee of £2,000 (Pounds Sterling) was asked for, which I agreed to. The only change in the contract was for me to receive 100% of the money before the goods were manufactured with the supply being 30 days after, with a member of their staff from China visiting our factory and checking the goods were as ordered.

    Anyone who has supplied goods to China, especially, chocolate, will know how difficult Chinese labelling is, let alone getting the goods through Customs but no labels were required!

    I looked very hard for the scam, it sounded too good to be true – but surely they would not have gone to all this trouble for a scam for £2,000.

    My Graphic Designer, Googled Zhuhai Nongzhixuan Trade & Development Co Ltd and we found this site.

    THANK YOU to everyone above who has taken the time to share their stories. All it has cost me is my boat-fare from Hong Kong to Zhuhai and a few samples.

  20. Marcos
    September 22nd, 2008 04:36
    20

    August,2008 : ZHUHAI NONGZHIXUAN TRADE & DEVELOPMENT CO.,LTD - Scam.
    Same thing happened to me with ZHUHAI NONGZHIXUAN TRADE & DEVELOPMENT CO.,LTD. Same elements: an huge business opportunity; a “too favourable” contract; no negotiation and no discount on the price requested… but at the end they inserted in the contract a clause for the payment in cash of just 2000 Euro (+or-)for notarial expenses ??!!We are dealing with 700.000 Euro, no discount requested … but they asked me 2000 Euro in Cash for the notary ??? “It has no sense” I thought . The flight ticket was already booked.. because of time reasons we arranged the meeting in Hong Kong. 2 days before the departure, I’ve been luky to find this web page while I was surfing the web… I did not tell them nothing … they are still waiting for me at the Hotel in Hong Kong . Thank you gentelmen to write down your experience.

  21. Aaron
    September 25th, 2008 22:22
    21

    Wow guys, I was about to book my ticket tonight! A friend said “Hey I typed in Chinese business scams and guess what I found?” These letters above hit it right to the tee! It’s a scripted scam. Right down to the lure not only of the “deal”, but getting a tour of the Terracta Soldiers. My scam had me flying to Xi’an as many others. They never questioned the contract, even said we could add 5% to the contract to cover travel expenses. This was awesome that you posted this. I was so much luckier. Out about a grand total - $600.00 for samples and shipping - because why would I question that when they wanted a $90,000 order right?! However, if I had read it yesterday I would have saved the other $300.00 for having to do an expedited passport! I saved 5g’s on a plane ride to hell though. Every letter above I could have wrote, blows me away. Thanks again.

  22. Dawn
    September 26th, 2008 08:33
    22

    Dear All, to see a photo of Mr. Li De Jiang from ZHUAHI NONGZHIXUAN TRADE & DEVELOPMENT CO., LTD, please see the link below: http://www.pikipimp.com/gallery/view_image/35399848

  23. Spaniard
    October 31st, 2008 11:51
    23

    Hi, there.

    The chinese scam is going on. Be aware of trusting a firm called YOLON TRADE CO. LTD or YOLON INDUSTRIAL.which is said to be placed in Guilin (Guangxi).

    After changing e-mails with them, they’ll invite you to go to China, to sign a very interesting contract.

    Fortunately i stopped playing this game at this point. DO NOT TRUST THESE PEOPLE!!!

    Apart from wasting my time and sending some samples, there was no other problem, but i believe many firms have gone and are goint to Guiling, for being scammed.

    Greetings from Spain

  24. JUAN CARLOS
    November 10th, 2008 20:29
    24

    Be carefull with a company called YOLON TRADE from Guilin.

    They contact us promissing 150k to 600k orders. I worked in Hong Kong 3 years in a chinese company and my wife is chinese from Hong Kong. My chinese hk company got scamed in 2003 by a chinese, this teached me to dont fall on such suckers again.

    First I advise to do the following:

    1. Check in google allways the company name
    2. They usually put awards in their website in chinese or HONOURS they call which looks like are prize and give a very serious looking. My wife translate those awards from YOLON TRADE and we found was just registration that could be easy to make fake. So get a chinese friend that take a look to their chinese documents y website.
    3. If you have install the Google Analytics or some software to analyze your web traffic you can see how interest they can be by checking the timing they spend in your web. With YOLON TRADE they promise very interested in our product and we found out they just spent 10 seconds in our web, so there I finally found out they was scamers.

    Send the contact of this suckers to your embassy in order to they contact with the police.

    Regards,

  25. Neil Napier
    November 25th, 2008 15:55
    25

    YOLON - GUILIN we were also scammed by this company - their modus operandi -large orders placed - travel to guilin to sign contract - expensive dinners - buy overpriced painting -
    you will never hear from them again.
    warning trade or travel to them is a futile venture

  26. Raymond
    December 2nd, 2008 03:52
    26

    We were scammed by a company:
    China Beijing Hengyuda International Investment Adsvisory Co. Ltd
    Address: haidian District fuxing Road Beijing China
    register number(110105010845158)(to be controlled)
    The roots of the company seem to be same as the of:
    NONGZHIXUAN TRADE & DEVELOPMENT CO., LTD.
    At least: Mr. Li De Jiang from ZHUAHI NONGZHIXUAN TRADE & DEVELOPMENT CO., LTD is a
    doppelganger of Mr. Zhang Chenxia, Financial controller from the later.
    Also following persons are involved:
    Mr. Li Xiang, Overseas Manager
    Mr. Lin Chao, Overseas Manager of department two.
    Mr. Niu deyun, General Manager.

    Lin Chao has sent inquiries before from ZHUAHI NONGZHIXUAN TRADE & DEVELOPMENT CO., LTD and from November 2008 from China Beijing Hengyuda International Investment Adsvisory Co. Ltd.
    Funny though no one of the managers of the “international” company speaks English.
    The procedure of China Beijing Hengyuda International Investment Adsvisory Co. Ltd is anyway completely the same as the of ZHUAHI NONGZHIXUAN TRADE & DEVELOPMENT CO., LTD

    Good luck and be careful out there!

  27. Canvasevent
    December 29th, 2008 03:32
    27

    Hi All, Thanks for sharing the story
    I almost scammed after I read this website,
    They change the company name to Shijiazhuang Shengdemei Import and Export Trade Co ltd.now, My flight shud on 13th january 2009, but after read your story I decide to cancel the meeting.
    The name of the person is : Mike, beware
    He asking me to chek in at Wangfujing Grand Hotel at beijing, then he will come to me to sign the contract, he has on translator (lady),Until I wrote this latter, he doesn’t know yet that cancel the meeting, so I you all the victims want to scamed this guy, pls send your guy, police or anyone from legal department to the hotel lobby to catch him

    Thanks
    Saba

  28. Bailis Stair
    January 8th, 2009 13:24
    28

    Shijiazhuang Shengdemei Import and Export Trade Co Ltd. is the company one of my collegues met in Beijing two weeks ago. Mike was the contact. They agreed to all changes in the contract and we said we could not sign without approval of CEO. We took their business cards and called the phone numbers…when back in the US, none of which were working. They provided a certificate showing their registration number in Chinese and their bank information. They would not provide any credit references. They agreed to pay 100% cash in advance. We believe it to be a scam but what is the scam? The $200 gift was already given.
    BBS

  29. Matt S.
    January 23rd, 2009 13:32
    29

    Beware the “notarization fee”. Once the contract is signed, they will offer to “share” the notorization fee and ask you for half. In our case, they asked for $16k as a “quality assurance fee”, which equalled .5% of the contract. When I refused, they pursued the “notarization fee”, which they explained as a federal tax. Complete BS. We refused and have not heard from them since.

    We’re out our travel expenses, but we did see China…for the first and last time. I read that Westerners have been traveling to the Far East for centuries in search of their share of wealth, only to return with nothing. The Chinese market is based completely on cheap labor. They do not innovate, only steal. Like all nations that export their only resource (research “Dutch Disease”), their economy will eventually collapse. I can’t think of any nation that deserves it more. No such thing as a free lunch. Unless you are manufacturing something in China, stay out! You will regret anything else. Buy AMERICAN!

  30. Art
    March 27th, 2009 07:01
    30

    Luckily I found this site when I did, I’m currently talking to a company called Shaanxi Qinhao import and export co. and today I received a letter of confirmation that pricing has been accepted by the board of directors for a manufacturing contract valued at $2000000. It just doesn’t sound right and whilst checking out scams came accross this site.

    True as all the posts claim they extended an invitataion to us to sign the contract in China!!

    This was never going to happen no matter how much the order was worth. Beware these scammers are getting slick.

  31. axel
    April 6th, 2009 13:22
    31

    Hi,

    I read your warning to Shaanxi Qinhuo.

    What is your business, we are in contact with them, they wanted a notarization fee, we didnt pay!
    Now we are waiting for there answer!

  32. Mr Daniel
    April 12th, 2009 12:12
    32

    April 11, 2009

    RE: NEWSTAR (CHINA)INDUSTRIAL CO LTD www.bkexport.com

    To Whom It May Concern:

    Our company recently purchased 1 container from NEWSTAR (China) Industrial company for bathroom related products which was listed on your website. We have lost thousands of dollars with this company because they use fake fumigation documents for shipping. This company is a FRAUD. DO NOT DO BUSINESS WITH THEM as they will not honor their contracts. Please feel free to contact me with any questions.

    Please remove them from any listing immediately.

    Sincerely,
    Mr Daniel
    General Manager
    PDL Importers NA

  33. MW Kusterer
    May 13th, 2009 12:40
    33

    Mr Kusterer
    May 12, 2009

    To whom it may concern:

    As mentioned by many others ,thanks for this website.It saved me many bills as seen by many others on this website.Our company was recently, via Kompass, contacted by a “representative” of a company Nadeck Mechanical Equipment in Kunming,Yunnan province to manufacture a steel part for them. The volume was huge and sounded very attractive. An invitation letter was sent to us , all looked good and hotel apparently booked too. I had ordered my flight ticket etc and was ready to go but luckily found this website which changed all. I only lost cancellation fee on ticket and visa cost. Something serious should be done to these scammers!!

  34. Ronnie
    June 24th, 2009 02:07
    34

    sorry to heard that
    Not every chinese likes scams

    Mike McCracken ’s story not only happen to forgeiners,also to chinese

    if guys want to do bussiness with chinese, i could recommend a company

    the site is [Link commented out], you can pass by

  35. Mr. pickles
    July 2nd, 2009 05:58
    35

    Hello. We are sitting in our hotel room right now in Guilin after our “business meeting”. We feel kind of stupid to say the least.

    They did it exactly like all the posts above this one. They are currently waiting for our $14,000 “gift”.

    We are out plenty of frigging money for travel expenses, etc. However, we did get to try snake head wine today.

    It’s hard to be an optimist sometimes, because we just get screwed don’t we?

    Trying to enjoy the rest of our “vacation”. Life’s lessons are hard :)

    MP

    P.S. boney, you were right.

  36. Shanghai
    July 2nd, 2009 08:37
    36

    Mr. Pickles, sorry to hear about your experience. If they are indeed “waiting” for your 14.000 gift you may want to spend your time better and take a taxi to Yangshuo, which is pretty close and has nice scenery.

  37. Elma Kelly
    July 15th, 2009 05:43
    37

    Hello, I have just been scammed for $900, £600 odd in my currency. I dealt with Shenzhen Lagogo Trading Co Ltd, luckily i did not go to china !!! It was an internet transaction, i checked out Company, had phone no. names, website (which looked professional), probably was professional for scamming !!! Stupidly i paid them by Western Union, Must have been a moment of insanity. However, I have written money off as a loss, But i hope no one else has too loose out, thats why i am posting this on any site i can find. Beware of a very chaming Mr Li Wang, and also Caihuan Wang !! They are scammers, i was sent a tracking number, which was correct in appearance, as i do have chinese suppliers that are great, however this track number has never been reccognised, and because you are dealing with china, who do you complain to ??? Hope this is read by anyone who is looking to deal with Shenzhen Lagogo Trading Co Ltd in Shenzhen.. Good luck and kind regards to everyone

  38. Patricia
    August 13th, 2009 09:56
    38

    Hi,

    Anyone heard of Y & L trading company, Second Floor, Building 48 Luandong in Guilin GuangXi China. I have been contacted by a Joan there.
    They are also asking me to come to China to sign a contract for a very large jewellery order.

  39. Razin
    September 7th, 2009 04:10
    39

    Thanks to the post i have been saved from disgrace and hard earned money. I was contacted by one Kunming Rander Machiner Equipment Company limited By one Li Disheng/ Susan. Most of the story goes the same as the others …they asked for a notarization fee of $3000 of which i am suppose to share $1500 …i had booked my ticket and expedieted my visa proceedings…had lost the money just for the visa and ticket cancellation charges ..lose is this much only because of the postings you guys made…thanks again.

  40. Peak Tech
    September 18th, 2009 02:20
    40

    I ordered a big order of cell phones from “IQS TRADE CO, LTD” paid them through Western Union and after they received my money they stopped answering there phones and replying to my emails, I knew something was up when I tried contacting there “overseas sales manager” ANDY, he all of a sudden stopped speaking on cellphones and no one speaks english. My advise is to avoid doing business with China, more than likely you will be sorry.

  41. Bob
    September 21st, 2009 15:52
    41

    Do NOT Deal with Elpan Trading Company, they are on the www.diytrade.com site. I ordered 5 Ipod Touch from these bastards and today I got a broken fake Ipod Nano, a pair of shit sunglasses and some kind of junk charger ! They are chinese scammers at their best

  42. Patrik
    October 9th, 2009 18:38
    42

    I have order Nintendo DS lite at the 13:th of Septembre and I havnt get them at all. When I try to contact them they didnt answer my mail.
    So dont do any buisness with Elpan International trading.

  43. kingsley
    November 20th, 2009 18:32
    43

    We are a company based in Idaho (USA). We have been doing business with reputable and trust worthy Chinese companies.
    Before you do any business in China,make sure you have a company do your due diligence for you.
    We have partnered with major companies in China.When next you want to do business in China do get in touch with us, we would be glad to recommend our clients to you.

  44. Eric
    December 9th, 2009 10:59
    44

    Take a look at http://www.china-atai.com
    i wanted a cotton candy machine and the show me photos by msn, and send videos. when it was time to buy they ask to use western union to transfer money as for a friend.
    Everythings looks real.
    Real machine, Standard price, nice peoples.

    first the email is from gmail.com
    only showing 1 machine in the office space.
    said that paypal was not secure for them.
    Try to use TT or western union.
    To mister Ou WunJun.

    Still not sure it was one but hey Im 95% convince.

  45. Michael Hartnett
    December 14th, 2009 08:04
    45

    Another scam is www.projectorfactory.com - they take your money and don’t ship the goods. Beware http://www.projectorfactory.com/ Chinese con scam fraud.

  46. Idlemall
    December 15th, 2009 11:49
    46

    As a wholesaler ourself, I would suggest:

    1) don’t pay by western union;
    2) don’t buy branded electronics on wholesale sites as they are all knock-offs;
    3 get rid of the “cheap” trap.

  47. Susie
    January 12th, 2010 23:33
    47

    Anyone heard of Y & L trading company, Second Floor, Building 48 Luandong in Guilin GuangXi China. I have been contacted by a Joan there.
    They are also asking me to come to China to sign a contract for a very large jewellery order.
    I inform you that it is a fake company and working on scamming

    You need more informaion, do contact me!

    eyouyou01001@yeah.net

  48. Scott
    May 17th, 2010 07:10
    48

    Here’s another fake company to watch out for, with the same scam:

    Company: Nantong XinTong Active carbon fiber Co.Ltd Beijing Branch
    Address: Beijing Suzhou Street Haidian District No.55
    Zip Code: 100083
    Manager: Wang Huichen
    Tel: 0086–010—81887049
    Mobiler phone: 0086-13693284752
    Fax: 0086—010—81886049
    E-mail: xintongbj88@163.com
    Website: www.xthxtxw.com

    They contacted us with a view to providing an entertainment show in China, at 3 cities. Just as all the previous above they would pay upfront and were talking about a £200,000 contract. They never questioned nor haggled over the fee, and never asked for a technical rider which was additional and could quite easily of cost more than the initial contract! Again, they wanted a face to face meeting in Beijing before they would sign the contract and were non negotiable over this point. They even sent through the invitation letter for a visa application. Luckily I didn’t get that far. I checked the company out with the UKTI and the China-British Business Council who could find nothing on any government platform, and nobody answered the phone numbers they provided. When I put these facts to Mr Wang (who previously was emailing me daily) he suddenly disappeared! Something needs to be done about these scams as they are giving legitimate Chinese business a bad name.

  49. Lou
    July 7th, 2010 09:55
    49

    I have been going to China for about a year now with the intention of doing business. So far my losses have been limited to low quality samples, as annoying as this is, it is normal business risk. Right now, wherever possible I try and make inexpensive (without printing costs) or free samples first. There are a lot fraudulent companies in China but also some really good ones. Other than the outright fraudster’s, a big problem are companies knowingly without the skills to deliver the required quality but would waste your time and money on their personal learning journeys. As a rule i completely avoid using Trading companies/Agencies and deal directly with factories provided they have someone who can grapple with your chosen language. This way, your risk is limited to quality control issues which you can minimally manage through deposits. However this is a simplistic view of risk as you could also lose thousands of cash. Trading companies are easily identified by the mumerous unrelated products on their websites or use of English company names and/or with “Import/Export” “International” etc. Or the classic- “Our boss has seperated the Sales dept into another branch company”. They also usually swear heaven & earth that they own the factories and will show you around such factories. Basically, you have to catch them out yourself and this sometimes comes with experience. Unfortunately, as in every other country, there are no guanrantees and tomorrow could be the day you fall prey!! God help us all!

  50. Lou
    July 7th, 2010 10:14
    50

    Following on from the message above, if you are purchasing, (1) get several quotes from the factories directly and avoid using the ‘cheapest’- there is usually a very good (negative) reason for this. I often get at least 10 quotes and what you notice is that the prices are often similar ( i sometimes think they meet from all over country to fix prices :-) ) so whats left is checking the reliability and authenticity of the factories.
    (2) Spell out EVERY SINGLE detail and double check that they understand. Language is often an issue and your idea of quality could be very different to theirs. I now get them to send me pictures of something similar as a check before they even attempt to make samples.
    (3) You have to be on their case every single day (by email & follow on call) whether you have agreed deadlines or not as the Chinese do not understand deadlines or ignore it since they will serve the highest paying customer at any one time.
    (4) If you can afford it, oversee production yourself or have a physical rep in the factories.
    (5) Always be prepared to cut your losses and move on. Regardless of how plausible the excuses are, things only get worse - never better.

    Goodluck!!

  51. Rick
    September 14th, 2010 00:00
    51

    I want to thank everyone who posted their story on this site. My company was contacted a few weeks ago from a company in China wanting to buy a vast quantity of one of our electronic products. It seemed to good to be true, but I played along and they got to their pitch about wanting me to fly to China to sign the contract. I checked my google analytics page and saw they they’d had spent a total of 30 seconds on the product page they were looking to buy.
    A previous person posted that they too had used google analytics to check a scamming company like that. I’d highly suggest everyone incorporate it into their site, even if its just to avoid these type of scams.

  52. jytv
    April 11th, 2011 04:23
    52

    I was subjected to a business scam from Shenzhen GT Industries Co Ltd. It was a lucrative business contract and they asked me to fly over to Macau (convenient as there are no visa requirements) to sign the contract. This went very well following which we went to lunch. Lunch consisted of more alcohol than food as 3 bottles of spirits were consumed as shots. My male colleague was considerably affected but as a woman, I refused to down any of the shots so I was relatively sober by comparisson to the others! After the lunch they asked for a gift as a sign of our thanks for this lucrative business deal. The amount they asked for was £600 and I think they would have asked for more had I been drunk. I suggested that we would consider writing it into the contract that we would pay them an ‘introduction fee’ after 3 months of supply but this was not acceptable. They ended the lunch abruptly and left us outside the hotel.
    Beware of business scams.
    Beware of Shenzhen GT Industries.
    Beware of Mr Peter Zhang and Mr Zhang Wen.
    Beware of Grace Profit Holdings Ltd, their registered company in Honk Kong.

  53. BD
    April 11th, 2011 17:00
    53

    jytv,
    We are currently in negotiations with Peter and Shenzhen GT Industry. Being that the deal seemed too good to be true, we searched last week and found scam articles. We changed our strategy and requested they wire a tooling deposit before we could transfer our share of the “transfer fee” of $3600.
    Last night we received an email that they were arranging the transfer asap. We all laughed but secretly hoped perhaps we were wrong.
    Your post confirms we are right…darn.

  54. Gary
    June 20th, 2011 09:58
    54

    YANCHENG FOREIGN TRADE CORP.LTD. I Had dealings with them I ordered goods and it has been over 100 days and shippment was promised within 30 days of deposit. I made the deposit but no shippment has been made. So beware of
    YANCHENG FOREIGN TRADE CORP.LTD. Tags are scam, Fraud, china trading

  55. Mark
    August 16th, 2011 09:54
    55

    Hi,

    My company has recently been contacted by a company called Zhengzhou Gently Business Co.,Ltd who are wanting us to produce an animation for their new hotel. The figures they are talking about seem too good to be true and they have already suggested a price before we’ve quoted. Their website looked very strange as it just seemed to have pictures of fizzy drinks on and then a few random items for sale such as a pearl necklace and a remote control helicopter. their website was only registered a couple of weeks ago and it is now down. I am just wondering if it is even worth bothering to put the quote together now after reading all of these articles. Having just done a little more digging I found that the registrar who registered the domain name is called: XIN NET TECHNOLOGY CORPORATION and has registered hundreds of domains that all look dodgy such as
    193qb.com and many more that are just a couple of numbers and a letter or 2.

    Please let me know if anyones heard of these companies

  56. Q
    March 20th, 2012 12:42
    56

    Does anyone know zhengzhou Strong Business Co., Ltd. Im afraid we may have been down the road so many seem to discuss herein. We concluded our deal yesterday but were not lavished with dinner or lunch or even a stunning interpreter. We were however asked to purchase a gift which was 10000RMB worth of cigarettes but in return were given a gift which included a Chinese art scroll of some sort. why would anyone get us all the way from Cape Town to China for cigarettes? I would understand the concept of cash or a deposit into their company acc, but cigarettes?

    I have searched the net for any problems with this company and found nothing but the story is very similar including the info on their website.

  57. VA
    May 3rd, 2012 07:23
    57

    dear Q,
    how was your final exp. ? Did u heard back from “zhengzhou Strong Business Co., Ltd.” ?

  58. Tench
    June 8th, 2012 10:33
    58

    Zheng Zhou Strong Business Co. Ltd did the same to us - they gave us a scroll, and requested cigarettes. I also find this strange?? Ella Liu was our contact, maybe the same one for you? They did try to get me to go to lunch and I can only assume they would have had their mates, family and all the chefs in on it and then made me pay. I did politely refuse so only down a 10000RMB worth of fags and the travel exspenses? Pointless in my opinion. But a scam all the same. So anyone esle dealing with them - BEWARE.
    We are contacting the Embassy about them and get the listed as scammers.

  59. What are some popular scams employed by Chinese scam artists? « Top Chinese Arts
    January 22nd, 2013 15:36
    59

    http://www.chinasnippets.com/2006/03/03/chinese-business-scams-china-fever/

  60. rob di
    December 14th, 2014 14:16
    60

    Another scam company is Oldway Industrial Co Ltd from Shenzhen China. We were also victims in the same way. We received an email from Elsa Xu (info.kintop@vip.126.com ) and also travel to China to sign the contract. We’ve stop at the right moment. Do not go to China to sign contracts if you are the seller!

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