Certificate Course
Due Diligence Essentials For
Business With China-Based Enterprises
Develop a structured understanding of how to conduct effective due diligence on China-based companies, covering corporate, financial, legal, operational and commercial risks.
Certificate Course
4 weeks
approx. 4 hours/ week
100% online
Open Enrollment
EUR 499
Course Overview
International business involves risk, making careful selection and verification of potential business partners essential. This is equally important when working with China-based enterprises. While the vast majority of companies operating in China are legitimately established and conduct their activities in accordance with applicable laws, regulations and business standards, appropriate due diligence remains an important part of managing potential risks.
This certificate course focuses on the essentials of desktop-based due diligence when assessing potential customers, suppliers and other business partners in Mainland China. You will develop practical skills to identify, assess and mitigate potential risks by examining relevant laws, regulations, standards, best practices and verification criteria that can be used to cross-check information provided by prospective business partners.
To support informed decision-making, the course combines practical examples, verification methods, research techniques and checklists that help you collect and cross-reference information from multiple sources. The emphasis is on developing a structured approach to due diligence that can be applied in real-world China business situations.
Course Structure
Five Focused Units.
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
Learn how to use the Chinese business license as a key starting point for third-party due diligence. This unit covers the main features and information contained in a business license, how to assess its authenticity and common risks such as altered or falsified licenses and the misuse of another company’s identity.
Unit 3: The Importance of Duly Signed and Sealed Documents
Learn about the important role of company seals (chops) and signatures in Chinese business practice. The unit introduces the main types of company seals, their respective uses, seal management practices and the risks associated with the use and handling of company seals and signed documents.
Unit 4: International Financial Transactions
Learn how to verify bank account information before making international payments to China-based companies. The unit examines key documents such as the Bank Account Opening Certificate and Bank Account Statement, together with practical checks for confirming the beneficiary and cross-referencing payment information.
Unit 5: Identifying and Managing Red Flags
Learn how to identify potential red flags and inconsistencies across multiple sources of company information. The unit examines business cards, brochures, websites, trade platforms, quotations, invoices, social media and other sources, and shows how these can be cross-referenced with information covered in the previous units.
Who Is This Course For?
This course is particularly relevant for professionals involved in China-related corporate finance, taxation and profit distribution, including:
- Business owners and senior executives assessing potential China-based business partners.
- China country managers and business development professionals evaluating customers, suppliers and cooperation partners.
- Procurement and supply chain professionals conducting supplier verification and risk assessments.
- Legal and compliance professionals involved in third-party due diligence and risk management.
- Risk management and internal control professionals assessing commercial and operational risks.
- Sales and commercial teams working with new customers or distributors in China.
Practical Tools Included
This course includes the following tools that can be directly applied in real-work work environments:
- China Business Due Diligence Checklist: A structured framework for conducting desktop-based due diligence.
- Business License Verification Checklist: Key information and verification points for assessing a Chinese business license.
- Company Seal & Signature Verification Checklist: Key considerations when reviewing signed and sealed documents.
- Bank Account Verification Checklist: Steps for cross-checking bank account and beneficiary information before making payments.
- Information Cross-Check Framework: A method for comparing information across websites, documents, business platforms and other sources.
- Red Flag Identification Checklist: Practical indicators that may require further investigation.
Earn Your Credential
Upon successful completion of the masterclass and the required assessments, you will earn a digital certificate of completion from the Institute of China Studies.
Your certificate provides a formal record of your completion of the program and can be retained as part of your professional learning portfolio.
Official Recognition
Issued by the Institute for China Studies.
Digital Format
Easy to download, share and add to your profile.
Continued Education
Educational Pathways.
At the Institute for China Studies, selected Certificate Courses form individual modules within our Diploma Programs and Advanced Diploma Programs. You can enroll in these courses individually, complete them at your own pace and build your knowledge step by step.
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Educational Pathways.
When you successfully complete a Certificate Course that forms part of a Diploma Program, the completed course can count as the corresponding module of that Diploma Program. By completing all required modules individually, you can progressively work towards the full Diploma.
Certificate Course
- Counts towards Diploma
Certificate Course
- Counts towards Diploma
Certificate Course
- Counts towards Diploma
Diploma
Your Course Professor
Dr. Richard van Ostende, DBA
Richard van Ostende is founder of the Institute for China Studies. He combines extensive professional experience and practical expertise in corporate finance, foreign investment and business strategy.
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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.
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.