Due Diligence Essentials For Business With China-Based Enterprises
E-Learning | Certificate Course
International business is not without risk and careful selection of potential cooperation partners is imperative. This applies to China as well. The vast majority of enterprises located in China are legitimately established, doing business, and seeking to develop their business operations in an honest way, compliant with domestic and international laws, regulations, and ethical standards. Unfortunately, a few that are not.
This course focuses on the essentials of desktop research based basic due diligence that should be performed at minimum when verifying the merit of a customer or supplier originating from mainland China. Attention goes out to developing the skills and competencies to identify, manage, and mitigate potential risks and identified risk areas by providing in-depth insight in laws, regulations, standards, best practices, and further criteria which can serve as a benchmark for cross referencing of information to be requested from and provided by the potential cooperation partner.
To support well informed business decisions, the content of this course is supported by multiple detailed examples and checklists used for verification and cross referencing of information from multiple sources.
Target Audience
Corporate Risk Managers, Compliance Officers, Sales and Business Development Managers and executives from all industries who have an interest in understanding how to identify, avoid and mitigate business risk.
100% Online delivery
The course is designed to be completed fully online enabling students to continue working during the course.
Literature
The course covers all literature essential to acquiring the fundamental knowledge for performing due diligence into China.
Duration
The standard duration of the course is 4 weeks based on an average time commitment of 4 hours per week.
Objectives
- Learn how to identify risks associated with the business license, company seals, payments, company and factory visits, sales prices, company websites and way of contact with counterparts.
- Learn how to perform basic due diligence of customer, supplier, and potential business partners.
- Gain in-depth insights in red flag areas related to financial transactions.
- Learn how to cross reference information from different sources.
- Develop an understanding of the importance of duly sealed and signed documentation.
Unit 1: Introduction
The first unit provides an orientation to the course and the online learning environment. The unit does not carry credits. You are encouraged to go through the materials at their own pace to get accustomed to the online medium.
Unit 2: The Business License
When performing third party due diligence in mainland China, the single most important document to request from potential customers or suppliers is a scanned color copy of the business license, with an imprint of the company chop affixed to it. The business license forms the starting point of the investigation and when provided, it should be assessed carefully.
In this unit the characteristics of the business license are discussed in detail as well as the most common related scams, which include but are not limited to selected adjustments to contents, falsified business licenses and business licenses issued in which the issuing party assumes the identity of another company.
Unit 3: The Importance of Duly Signed and Sealed Documents
The use of company seals in China is deeply embedded in daily business practice and replace the use of signatures in Western countries. Every company – domestic or foreign-invested – holds a set of company seals, of which each is to be used for a different purpose.
In this unit the importance of sealed documentation in China is discussed, followed by an introduction of most commonly used company seals, seal management and risks associated by holding and using seals and signatures of documentation in China.
Unit 4: International Financial Transactions
Before any financial transaction is made, the bank account should be confirmed to ensure that the payment will be transferred to the correct beneficiary.
In this unit two of those source documents for verification of the account, the Bank Account Opening Certificate and the Bank Account Statement are discussed in detail. In regards of processing telegraphic transfer payments made by foreign enterprises to companies located in mainland China focus goes out to checks and cross referencing of information which should be performed to ensure the payment is made to the correct company before processing a payment.
Unit 5: Identifying and Managing Red Flags
Other sources of information that might be valuable to the process of verification of companies include but are not limited to business cards, brochures, email signatures, company website, trade platforms that are used by the potential cooperation partner, quotations, invoices, social media and so on.
This unit provides an overview of the main items to be considered in the reviewing process in combination with the company materials discussed in previous units.
No specific prior education or knowledge about China-related due diligence is required to be admitted to this course.
Assessment
Assessment is carried out through a series of written assignments to be completed at the end of each unit.
Certificates
A course certificate is issued upon the successful completion of the course.
Tuition fee
Tuition fee for the entire course is EUR 499 to be paid in advance.
The tuition fee includes all necessary literature and study materials, guidance and support during your studies, free extension of the study duration (if required), and 1:1 contact with your course professor.
Start date
Open enrollment applies to this course. You can start this course at a timing of your convenience.
How we deliver value
Program Completion Benefits
Certificate
Upon successful completion of the course, you will earn a digital certificate of completion from the Institute of China Studies.
Note: After successful completion of the online program, your verified digital certificate will be emailed to you in the name you used when registering for the program. All certificate images are for illustrative purposes only and may be subject to change at the discretion of the Institute of China Studies.
Contact us
Would you like more information about the course and the admission requirements? Then request a free study consultation. Of course, free of charge and without obligation. This way you will learn more about the content of the course, the teaching materials, and the online learning environment.
Enroll today
Enroll today and develop essential skills and insights about performing due diligence essentials for business in China and China-based enterprises, which can be directly applied in your professional work environment.