NEW DELHI, July 30 : The Indian Embassy in Beijing has asked Indian small and medium enterprises to “adopt adequate precautions” while doing business with Chinese companies.
The updated advisory by the Trade and Commerce Wing of the Indian Embassy comes a few days after the meeting in Vientiane between External Affairs Minister S. Jaishankar and his Chinese counterpart, Wang Yi.
The Indian trade advisory said: “The embassy has regularly come across several problems faced by Indian companies doing business with Chinese entities in China. It is requested that Indian companies take note of this advisory and its annexure documents and adopt adequate precaution while dealing with Chinese entities.”
The mission said it has observed that a majority of the trade dispute cases involved Chinese companies registered in the Shandong, Hebei, Guangdong, Jiangsu and Zhejiang provinces.
“Therefore, Indian companies are advised to take extra precaution before trading with companies from these provinces,” it warned.
The Indian Embassy said it has regularly come across several problems faced by Indian companies doing business with Chinese entities in China.
The advisory recommends that before doing business with any Chinese entity, Indian companies should write to the Indian Embassy or the Indian Consulates at Shanghai, Guangzhou and Hong Kong to verify the credentials of the Chinese company. It said the Indian missions will respond in 4-5 working days.
The advisory said that in case of large transactions, it recommended that Indian companies consult a Business Service Company which can provide a report on the business transparency, financial health, reputation, reliability and credentials of the Chinese entity.
The advisory also recommends that before doing business with any Chinese entity, Indian companies collect and retain copies of both the Resident Identity Card (Chinese Identity Number) and passport of the proprietor and other responsible interlocutor(s) of the Chinese entity.
EAM Jaishankar and Chinese FM Wang met on the sidelines of the ASEAN-mechanism framework on July 25 in Laos, during which EAM stressed that China must accept the Line of Actual Control (LAC) and past boundary agreements for normalisation of ties.
(UNI)
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