Indian SMEs ought to be cautious whereas doing enterprise with Chinese language entities
New Delhi:
The Indian Embassy in Beijing issued an announcement requiring Indian small and medium-sized enterprises to take sure precautionary measures earlier than conducting any enterprise with Chinese language corporations.
The advisory states that these precautions are needed because the embassy typically encounters among the points confronted by Indian corporations doing enterprise with Chinese language entities in China.
The advisory means that Indian corporations ought to write to the Indian Embassy (com.beijing@mea.gov.in, ccom.beijing@mea.gov.in) or the Indian Consulate in Shanghai (hoc. shanghai@mea.gov.in), Guangzhou (com.guangzhou@mea.gov.in) and Hong Kong (commerce.hongkong@mea.gov.in) to confirm the entity’s credentials. Delegations will reply inside 4-5 working days.
The advisory additional acknowledged that whereas endeavor massive transactions, Indian corporations are strongly suggested to seek the advice of a enterprise providers agency that may present stories on the enterprise transparency, monetary well being, repute, reliability and credentials of the Chinese language entity.
The advisory additionally means that earlier than doing enterprise with any Chinese language entity, Indian corporations ought to acquire and retain copies of the Resident Id Card (Chinese language Id Card Quantity) and passport of the house owners of the Chinese language entity and different accountable interlocutors.
The embassy noticed that the majority commerce dispute instances contain corporations registered in Shandong, Hebei, Guangdong, Jiangsu, Zhejiang and different provinces. Due to this fact, Indian corporations are suggested to take further precautions earlier than buying and selling with corporations in these provinces.
The announcement revealed by the Indian Embassy on X additionally has attachments that corporations must evaluate.
Appendix 1 lists typical points confronted by Indian corporations. It additionally comprises a listing of precautions that Indian corporations are suggested to take when coping with Chinese language entities. Annex 2 comprises an outline of the standard modus operandi employed by offending Chinese language entities, whereas Annex 3 comprises a listing of Chinese language entities concerned in commerce disputes with Indian corporations between 2009 and April 2024.
(Apart from the headline, this story has not been edited by NDTV employees and is revealed from a syndicated feed.)
