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Doing Business With Company in China 24 replies,14015 views

#1

Hi,

I need help and advice from anyone who is familar with doing business with companies outside of the US.  I have Bath & Body products listed on Alibaba.  Approximately 2 months ago, a company from Xi'an, China contacted me via email wanting to purchase my product.  I called the gentleman who emailed me; however, due to the language barrier...he could not understand me and I could not understand him.  Therefore, we have been communicating via email for two months.

We have agreed on a price and the company has emailed a contract for me to sign.  Because I am not experienced with doing business with a foreign country...I did not want to sign the contract right away.  The contract indicates that this company will pay 50% of the total goods upon signing the contract and the remaining 50% will be paid by L/C ( letter of credit) before shipment date. 

It appears that the company really wants to do business with me because they have been emailing me wanting to know the status of the contract.  They have even extended an invitation for me to visit their company in Xi'an, China so that we can personally sign the contract.

If anyone can assist me with this or point me in the right direction.......I will greatly appreciate it.  I think the company in China has been very patient with me and I feel I need to let them know if I am ready to proceed.  I can email a copy of the contract and the info for the contact person in China...if that info is needed by whomever is willing to assist me.

 

Thank you,

www.SimplyGirlz.com



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#2
Re: Doing Business With Company in China
Quoting from [vsquirewell]:

Hi,

I need help and advice from anyone who is familar with doing business with companies outside of the US.  I have Bath & Body products listed on Alibaba.  Approximately 2 months ago, a company from Xi'an, China contacted me via email wanting to purchase my product.  I called the gentleman who emailed me; however, due to the language barrier...he could not understand me and I could not understand him.  Therefore, we have been communicating via email for two months.

We have agreed on a price and the company has emailed a contract for me to sign.  Because I am not experienced with doing business with a foreign country...I did not want to sign the contract right away.  The contract indicates that this company will pay 50% of the total goods upon signing the contract and the remaining 50% will be paid by L/C ( letter of credit) before shipment date. 

It appears that the company really wants to do business with me because they have been emailing me wanting to know the status of the contract.  They have even extended an invitation for me to visit their company in Xi'an, China so that we can personally sign the contract.

If anyone can assist me with this or point me in the right direction.......I will greatly appreciate it.  I think the company in China has been very patient with me and I feel I need to let them know if I am ready to proceed.  I can email a copy of the contract and the info for the contact person in China...if that info is needed by whomever is willing to assist me.

 

Thank you,

www.SimplyGirlz.com



 It's a scam ! Don't fall to their trick! Such kind of scam from China is common and was mentioned in this forum many many times by scam victims!  Believe me!  I don't want to see you lose your hard earned money to all this $%^&** scammer !

#3
Re: Doing Business With Company in China
Quoting from [vsquirewell]:

Hi,

I need help and advice from anyone who is familar with doing business with companies outside of the US.  I have Bath & Body products listed on Alibaba.  Approximately 2 months ago, a company from Xi'an, China contacted me via email wanting to purchase my product.  I called the gentleman who emailed me; however, due to the language barrier...he could not understand me and I could not understand him.  Therefore, we have been communicating via email for two months.

We have agreed on a price and the company has emailed a contract for me to sign.  Because I am not experienced with doing business with a foreign country...I did not want to sign the contract right away.  The contract indicates that this company will pay 50% of the total goods upon signing the contract and the remaining 50% will be paid by L/C ( letter of credit) before shipment date. 

It appears that the company really wants to do business with me because they have been emailing me wanting to know the status of the contract.  They have even extended an invitation for me to visit their company in Xi'an, China so that we can personally sign the contract.

If anyone can assist me with this or point me in the right direction.......I will greatly appreciate it.  I think the company in China has been very patient with me and I feel I need to let them know if I am ready to proceed.  I can email a copy of the contract and the info for the contact person in China...if that info is needed by whomever is willing to assist me.

 

Thank you,

www.SimplyGirlz.com




I have gone through the same procedure. They give us favarable payment terms and accepted my higher pricing also.

They repeatedly insisted that to get the foreign exchange issued they need to sign the contract face to face. They also mentioned that their boss needs to have a good control over the deal so he wants to meet me personally. When in turn I invited the boss, I got a reply that boss is very busy and cant come down to my country.

After that I asked for their boss contact nos. I said I need to talk to your boss before making any decisiion.

And guess what I have not received a reply after that. This, completely makes me belive that it is a pure scam.

However, I wonder what would that company gain from doing the same. They didnt asked for money to be sent. What can be their motive behind the same.
#4
Re: Doing Business With Company in China
Quoting from [vsquirewell]:

Hi,

I need help and advice from anyone who is familar with doing business with companies outside of the US.  I have Bath & Body products listed on Alibaba.  Approximately 2 months ago, a company from Xi'an, China contacted me via email wanting to purchase my product.  I called the gentleman who emailed me; however, due to the language barrier...he could not understand me and I could not understand him.  Therefore, we have been communicating via email for two months.

We have agreed on a price and the company has emailed a contract for me to sign.  Because I am not experienced with doing business with a foreign country...I did not want to sign the contract right away.  The contract indicates that this company will pay 50% of the total goods upon signing the contract and the remaining 50% will be paid by L/C ( letter of credit) before shipment date. 

It appears that the company really wants to do business with me because they have been emailing me wanting to know the status of the contract.  They have even extended an invitation for me to visit their company in Xi'an, China so that we can personally sign the contract.

If anyone can assist me with this or point me in the right direction.......I will greatly appreciate it.  I think the company in China has been very patient with me and I feel I need to let them know if I am ready to proceed.  I can email a copy of the contract and the info for the contact person in China...if that info is needed by whomever is willing to assist me.

 

Thank you,

www.SimplyGirlz.com



I went throught the same with this company they have a bad reputation and will make you lower the price once you get to China. 
#5
Re: Doing Business With Company in China

TRADEINDIA, what they ghet out of it is, when you come to China and the contract is signed you will be asked to give the CEO a very expencive gift and maybe also pay a vey expencive dinner, they recive Kick back from this,

Past Guling in the seach forum box in the top and se what I mean

#6
Re: Doing Business With Company in China

Lets look at this transaction stage by stage:

I suggest you to add / amendthe following points of contract :

a. The contract will become operative on receipt of funds (50% of contract value ) in Seller's Account. This advance wll be Non-Refundable / Non-Transferable, and valid for this particular contract only. No change of beneficiary's name / address or any other term will be acceptable until & unless agreed by the seller in writingminimum 14 days beforeshipment date.

b. The buyer isrequired to establish anIrrevocable Letter of Credit (AT SIGHT), confirmed by a First Class Bank.L/C to be freely negotiable and transferable to any bankat discretion of seller. L/C Confirmation and other charges within as well as to be borne by buyer.

Your liability towards contract will come into existence, only after you have received 50% advance amount of your agreed total contract value. So, before receipt of 50% funds in your account, you have nothing to loose. And after receipt of this 50% advance, you are safe upto 50% of the contract value.

You will start manufacturing of the ordered items.

You will make this shipment, ONLY if your bank receives the above-said L/C . In case the buyer does not establishes the L/C, or the L/C established is not as per agreed terms, you will not make the shipment. In such case, this order is cancelled, you will be in possession ofthe goods as well as 50% of their value as well. So then you can sell the prepared items anywhere even at a discount, and will not be a loser.

The so called “First Class Bank” is a list of world-wide banks mentioned in Banker’s Almanac. This book will be available at the Foreign Trade department of your bank.

 

I suggest that you take your banker into confidence as well.

Best of Luck…

Omar

 


#7
Re: Doing Business With Company in China

I do not agree other replies. I am a supplier on Alibaba.com too.

You can not make judgement whether it is scammer ot not based on these information. You cannot say they are scammers based only on payment terms. A real good company will even require 100% advance, because buyers are curing for their products.  Also ,if it is really a big company, the big boss may be able to deal with complain himself.

You need to make your own judgement to do business. You shall investiage on market. If this supplier's price is reasonable, and if product feature is good. If it offer like 50% lower than other suppliers , you should be noticed. You can image and pretent that you are a  supplier, what is your situaiton? And what reaction is reasonable.

If you have enough budget, it is always better to meet people face to face. Try to make some local friends, even with people inside the company. They may help you. Make friends based on their attitude, appreance, etc from the real world.

Finally, good luck, wish you have a good business.

 

 

#8
Re: Doing Business With Company in China

hi, you can send me their company name, I will make a quick check on Chinese content websites, and make you some suggestions.

#9
Re: Doing Business With Company in China
Quoting from [vsquirewell]:

Hi,

I need help and advice from anyone who is familar with doing business with companies outside of the US.  I have Bath & Body products listed on Alibaba.  Approximately 2 months ago, a company from Xi'an, China contacted me via email wanting to purchase my product.  I called the gentleman who emailed me; however, due to the language barrier...he could not understand me and I could not understand him.  Therefore, we have been communicating via email for two months.

We have agreed on a price and the company has emailed a contract for me to sign.  Because I am not experienced with doing business with a foreign country...I did not want to sign the contract right away.  The contract indicates that this company will pay 50% of the total goods upon signing the contract and the remaining 50% will be paid by L/C ( letter of credit) before shipment date. 

It appears that the company really wants to do business with me because they have been emailing me wanting to know the status of the contract.  They have even extended an invitation for me to visit their company in Xi'an, China so that we can personally sign the contract.

If anyone can assist me with this or point me in the right direction.......I will greatly appreciate it.  I think the company in China has been very patient with me and I feel I need to let them know if I am ready to proceed.  I can email a copy of the contract and the info for the contact person in China...if that info is needed by whomever is willing to assist me.

 

Thank you,

www.SimplyGirlz.com



hi, you are lucky to have your products sold to China market, you should have a try at least, what you should consider mostly is how to produce and arrange the delivery of the cargos according to the contract and or L/C. I will be glad to give you advices on any problems relative to the business with Chinese, as I am dealing with international business in China more than 10 years..  Best regards   MR.TIAN,  EMAIL:  FCTIAN@HOTMAIL.COM
#10
Re: Doing Business With Company in China
Quoting from [vsquirewell]:

Hi,

I need help and advice from anyone who is familar with doing business with companies outside of the US.  I have Bath & Body products listed on Alibaba.  Approximately 2 months ago, a company from Xi'an, China contacted me via email wanting to purchase my product.  I called the gentleman who emailed me; however, due to the language barrier...he could not understand me and I could not understand him.  Therefore, we have been communicating via email for two months.

We have agreed on a price and the company has emailed a contract for me to sign.  Because I am not experienced with doing business with a foreign country...I did not want to sign the contract right away.  The contract indicates that this company will pay 50% of the total goods upon signing the contract and the remaining 50% will be paid by L/C ( letter of credit) before shipment date. 

It appears that the company really wants to do business with me because they have been emailing me wanting to know the status of the contract.  They have even extended an invitation for me to visit their company in Xi'an, China so that we can personally sign the contract.

If anyone can assist me with this or point me in the right direction.......I will greatly appreciate it.  I think the company in China has been very patient with me and I feel I need to let them know if I am ready to proceed.  I can email a copy of the contract and the info for the contact person in China...if that info is needed by whomever is willing to assist me.

 

Thank you,

www.SimplyGirlz.com



Thanks for your help!!  The company is Xi'an Hengyun Import & Export Trade Co., Ltd.

They are located at  158 Hanguang Road in Xi'an, Shannxi

I look forward to your reply and I really appreciate your help....

#11
Re: Doing Business With Company in China

Just share my very recent experience so you can judge your situation better.

Our company receive one order from the company named KenLong from Guilin, China. They make their image by the website www.kenlongcn.com saying that they are a big company who invested in 11 kinds of industry.

After just checking our price list, they send me the contract, it was about 350,000$ contract and they did make some mistakes increasing some of the price which benefits us. 

We were invited to China to sign the contract face to face before October since their boss will go on business trip to the US. Our boss were about to go there, we even reserved the airplane ticket and told them that we have an interpreter in Guangjou near to Guilin so he can help us interpret the meeting. Then they mailed us to tell us that it's summer there and all the hotel are full so they reserved the 4 stars hotel for our boss, and they have a lot of people who can be interpreters in their company, this made us surprise since we do not request for that.

One of our old staff was Chinese and now live in China (the interpreter we mentioned), we asked him to check it out and when he called to the company in the working time, the phone is connect to someone's handphone and no one answer the phone. And he found out that this company is not big as it boast on the website. We decided to postpone the visit. 

And finally when I use search engine to search their website, I found that somebody already mentioned about this company and their bitter experience in China right here in Alibaba forum.

http://resources.alibaba.com/topic/42890/Guilin_Youlianshiye_Co_Ltd.htm?message=406890

They trapped people to pay for expensive hotel, dinner, buy gift such as paintings worth 100$ at the price 5000$ and something like that. And they get benefit from the hotel, restaurant, and the shop. And for sure even the contract was signed, there is no follow up and nothing happens after you come back to your country. They will disappear and never answer your phone.

That is the popular scam from Guilin company that I found in the safe trade forum.

I found this accidentally, maybe this is in the same company that want to sign contract with you.

http://resources.alibaba.com/topic/344398/Information_on_Xi_An_HengYun_IMPORT_EXPORT_TRADE_CO_LTD__.htm

People said they are scammers.

http://resources.alibaba.com/topic/344384/Xi_An_HengYun_IMPORT_EXPORT_TRADE_CO_LTD_.htm

 

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