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Pitfall 7: Confusion Over the Contracting Party

Part 7 of 21 Pitfalls to Avoid When Sourcing from China.

The Pitfall

Chinese trading companies often set up Hong Kong affiliates with similar names.

Why It's Dangerous

A Hong Kong entity creates jurisdiction, asset-preservation and enforcement problems.

How to Avoid It

Clarify the exact contracting entity and its registration number before signing.

Sourcing from China? Get it right from the start.

Our Chinese lawyers review suppliers and contracts before you commit — and recover your losses if a deal goes wrong.

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