[250716.EN.BIZ] India Issues Strong China Trade Advisory But Only To Select Trading Bodies

INDIA has issued a stern trade advisory aimed at China - only the fourth such public advisory in six years - warning trading companies about a range of trade-related problems and scams perpetrated by Chinese companies, according to Delhi's India Today.

While the advisory - prompted by a string of trading disputes - was circulated this week by the Indian Consulate in Shanghai to only select trading bodies, the Indian government has sought to play down the warning amid several concurrent strains in ties with China.

Unlike the past three advisories, issued in 2010, 2011 and 2013, this one was not published on the Indian Embassy's website. Traders in Beijing and Tianjin in the north when contacted said they were unaware of the advisory, and questioned why it was only being made available to select trading bodies and community associations if it presented serious warnings about trade with China.

"It is a routine thing," an Indian Embassy official in Beijing said, but offered no comment as to why unlike the previous three advisories it was not published on the embassy's website.

The detailed advisory issued stark warnings about trading with Chinese companies. It said it was "being issued in the interest of Indian traders/small and medium enterprises (SMEs) that intend to or are doing trade with Chinese entities in China.

It listed a range of problems faced by companies, from the supply of "sand, stones, salt, bricks, mud etc in place of chemicals, silicon carbide, aluminium and zinc ingots, shellac, plastics, polymers" to refusals to send consignments despite payments being made.

The advisory offered a list of precautions, from running credential checks on Chinese companies, including through the Indian Embassy or Consulates in Shanghai, Guangzhou and Hong Kong, to "avoid transacting with any company from a B2B platform".

Source : HKSG.