India imported $62 billion of Chinese goods last year.
Alarmed by issues such as supply of sand, stones, salt, bricks and even mud in lieu of chemicals, silicon carbide, aluminium ingots, plastics and polymers, the Indian embassy in Beijing has issued a trade advisory for dealing with Chinese companies after a gap of over three years.
There had been about 200 instances of disputes with Chinese companies in the intervening three years, officials said. China is the only country against which India has issued trade advisories.
According to the ministry of commerce, India-China trade fell 2 per cent to $71 billion in 2015-16.
India imported $62 billion of Chinese goods last year.
Chinese companies have been accused of supplying substandard goods, diverting payments into unassociated bank accounts, declining to pay, and refusing to take delivery of consignments.
“The advisory is meant to enhance commercial cooperation between India and China by drawing attention to some of the risks faced by Indian companies,” said the warning issued by the Indian embassy in Beijing.
A list of checks has been released, including running the credentials of Chinese companies past the embassy or consulates in China.
“In case of large transactions, consult a business service company that can provide a report on the business transparency, financial health, reputation, reliability and credentials of the company,” said the advisory.
The US often issues advisories for conducting business in India, Pakistan, China and elsewhere.
The embassy also warned against transacting on business-to-business platforms.
Exporters or importers of a particular commodity or service can be accessed by sending trade queries to the embassy and the consulates in Shanghai, Guangzhou and Hong Kong.
Earlier trade advisories issued by the embassy in Beijing were in December 2010, September 2011 and April 2013.
The latest one is based on complaints brought to the notice of the embassy by the commerce ministry.
“It does not substitute in any way the company’s own actions or responsibility,” said the advisory.
The embassy recommended site visits for large transactions.
“Take photos of the company and the factory during such visits. Check whether products are produced by the company and whether the packages belong to the target company,” said the advisory.
