| Performing due diligence activities on behalf of our clients'
interests is one of our core business services. We strongly
recommend every foreign company to go through a real process of due
diligence before creating a partnership or cooperation agreement in
China.
Who are your potential partners? To whom are they connected? Who
are their backers? What is their true financial status? What is
their business track record? What is their history? Do they have
joint ventures or agreements with your competitors? How do local and
national authorities perceive them?
Every one of these questions should be answered before you sign
on the dotted line.
Due to the lack of reliable credit and reporting structures in
China, good due diligence can only be performed through access to
political and personal networks of trustworthy people in the PRC.
China Channel has always favored a top-down approach. This approach
is not only expedient, it also ensures that a client's business
receives the most appropriate high-level attention warranted, and
thus acts as a means of committing senior people to the best
interests of our clients. Such an approach is often useful should a
client need assistance or simply access at some future point in his
business in China.
Remember, due diligence is not only the process of having
accountants look at a company's financial position. It is also the
process which leads to a true understanding of who your partners
are, what their background is, and what their other relationships
are. This is critical information which we encourage you to let us
help you find and assess.
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