Despite the unprecedented challenges the pandemic has brought for global supply chains, many EU SMEs continue to source goods from China. But finding the right partner is not an easy task; careful analysis and due diligence are required.
Unfortunately, cases of scams remain very frequent; the EU SME Centre receives, on a weekly basis, requests for assistance from EU SMEs which encounter significant issues when purchasing from Chinese suppliers. Even worse, after falling victims to a scam, there is very little that EU SMEs can do: legal action in China requires a significant amount of money and time; EU SMEs often do not know where to start, and consequently may opt to swallow the bitter pill instead of enforcing their rights. Scammers know this very well and indeed rely on this aspect to perpetrate their frauds.
The risk of scams and quality issues when purchasing from Chinese suppliers can be reduced, and often avoided, by taking simple steps to conduct background checks and risk assessment. This article provides by the EU SME Centre summarises a list of common red flags and preventive measures to guide EU SMEs on the process.
Read the full article here .
The EU-China Business Association is a partner of the EU SME Centre.