Yesterday in Moscow  in the Expocenter passed The second Forum "Russia-China: New opportunities for successful business development", which raised the pressing problems that our entrepreneurs face when doing business with Chinese factories and suppliers. Forum organized by JSC "Expocentre" together with the consulting company Between2countries, revealed the most pressing problems of Russian owners of small and medium-sized businesses.



For example, the managing partner of Between2countries, Leila Pavlova , told how one of her clients from the region decided to check the quality and equipment of Chinese factories and then conclude a contract with one of them. He was taken around the production facilities for several days and shown cutting-edge equipment. The client was delighted. Until, having carefully examined his own photos, he realized that all the time he was taken to the same factory, which had nothing to do with the future contract at all. In addition, as Leila explained, according to Chinese law, any Chinese a priori in court is a winner in advance and even if you are absolutely right, it is impossible to win a dispute in court. You can only win by having The PRC of the Chinese same representative. The problems identified during the discussion, by the way, are often characteristic of many other countries, so the advice to be more attentive for those who have decided to enter into international relations in order to develop their business is simple and obvious.



But they are not observed by all market participants. We present the most common cases that lead to the collapse and loss of business.

The first. These are deadlines. The Chinese like to procrastinate with documents, their contracts are often just formal papers and, in addition, they, promising deliveries, do not take into account local and Russian holidays and time for customs clearance. Therefore, when a Chinese supplier promises to deliver the goods to in a monthRussia, this is a classic trick. The average time to select a supplier to order a seasonal or holiday collection is from 8 to 9 months. According to Pavlova, already in the risk group are those contracts and orders that are timed to February 23 and March 8.

The second method of deception is just an option with that businessman, who was driven around an ultra-modern factory. It is necessary to check the owner of the enterprise, turnover, debts, and even the owner of the land on which the production is located before concluding the transaction. Such data is given for free The Chamber of Commerce and Industry of China, as well as its branches in Taiwan and Hong Kong.

The third important way to cheat and give out low-quality goods is non-compliance with quality standards. Except mandatory now according to the laws of China laboratories in production, experts recommend checking 15 percent of the goods from each batch in specialized independent laboratories. If you immediately take this issue lightly, the Chinese will perceive this approach as incompetence and with each batch of goods the number of defects , including hidden , will increase.

The fourth case of loss of money is the absence of a serious and detailed contract, taking into account all force majeure circumstances, defective products, insurance and refund for it, exact terms and details (with mandatory compliance with the company with which you conclude contract). You may not receive the goods and components promised to you on credit. The exception is Russian companies that have a positive annual income in for three years and above. They are recommended to take out a loan and apply for insurance risks from factories or from Chinese credit organizations, they are lower than from Russian banks.



And the fifth way to protect yourself from losing money. You may be refused shipment of goods without prepayment, but there are serious large factories that are ready to take as prepayment 10-50 percent of the contract value. You will also definitely get a discount on cargo insurance if you are not a novice entrepreneur. It helps a lot even before the conclusion of the main contract the agreement of intent, which will calm the Chinese side and help you move along the path to success.

Photo: Julia Rigby.