Publication
Due Diligence Essentials For Doing Business In China And With China-Based Enterprises
A practical guide to assessing business partners, verifying key information and identifying commercial and compliance risks.
Dr. Richard van Ostende, DBA
Why This Guide?
Every successful partnership in China begins with proper due diligence.
International business is not without risk, and careful selection of potential cooperation partners is imperative. This applies to China as well. While the vast majority of China-based enterprises are legitimately established and operate in an honest, compliant way, some are not. This guide discusses the essentials of desktop-research-based due diligence that should be performed, at minimum, when verifying the merit of a customer or supplier originating from mainland China. This guide provides a practical overview of the key issues involved.
What This Guide Covers
The guide addresses the following key topics and themes:
- The identification of risk indicators related to business licenses, company seals, payments, company and factory visits, sales prices, company websites, and contact methods with counterparts.
- The performance of basic due diligence on customers, suppliers, and potential business partners.
- Red flag areas related to financial transactions.
- The cross-referencing of information from multiple sources.
- The importance of duly sealed and signed documentation.
Practical Tools Included
Practical tools to help apply these concepts in real world settings:
- The identification of risk indicators related to business licenses, company seals, payments, company and factory visits, sales prices, company websites, and contact methods with counterparts.
- The performance of basic due diligence on customers, suppliers, and potential business partners.
- Red flag areas related to financial transactions.
- The cross-referencing of information from multiple sources.
- The importance of duly sealed and signed documentation.
Who Is This Guide For?
Designed for professionals managing or advising China based business operations:
- Procurement & Sourcing Managers
- Compliance & Risk Officers
- Business Owners & Entrepreneurs
- Legal & Corporate Advisors
- Investment Professionals
From Publication to Professional Development
Related Course
Deepen your knowledge with our Due Diligence Essentials for Business with China-Based Enterprises Course, an e-learning course covering the desktop research and verification steps needed to assess a potential customer or supplier in mainland China. The course walks through the laws, regulations, and standards that serve as benchmarks for cross-referencing information, supported by detailed examples and checklists for verifying and validating a potential partner.
About The Author
What People Say
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.