At least once every 2 weeks, I get an email from the victim of a scam performed by a Chinese supplier. They ask me whether someone can help them recover the money. Sometimes it is a scam (seller asks for a deposit before shipment, then … [Read more...]
Don’t hire a Chinese citizen illegally
Many importers end up feeling good about a particular individual, and hire him/her for a fixed salary. The objective is usually to communicate with suppliers, to follow new developments, to inspect product quality, and to source new … [Read more...]
How much legal protection do importers need?
From time to time, an importer asks me about everything he can do to protect himself. Let's say they just received a shipment of defective goods. Now they are willing to pay for extra protection. They will want to know how to check the … [Read more...]
Liability insurance for importers
I had a nice meeting with a potential client today, and we got to talk about liability insurance. What is liability insurance? According to Wikipedia, it "protects the purchaser (the "insured") from the risks of liabilities imposed by … [Read more...]
Preventing Chinese suppliers from subcontracting: the bike lock theory
The China Law Blog just released an interesting post, introducing the "bike lock theory of Chinese law". Dan Harris makes the point that lawyers can help prevent quality issues by crafting a good contract. And he takes an example: how a … [Read more...]
Are Chinese courts unreliable?
Most companies buying in China don't take the precaution to write a contract with their suppliers. Even when large sums are at stake. The common perception is that going to a Chinese court is a long and expensive process, for a highly … [Read more...]
The importer’s dilemma: legal risks or higher costs?
Importers often play a delicate balancing act between reducing quality control expenses on the one hand, and minimizing product liability risks on the other. Many small importers are cornered in a situation where they have to sacrifice … [Read more...]