Conducting Due Diligence in China
The analysts at ethiXbase have a long history of conducting due diligence on subject companies and individuals in the People’s Republic of China. This experience has produced a truly refined research methodology that ensures our reports produce “all that is knowable” from the public domain.
Challenges with Chinese Due Diligence
It is important to consider some of the challenges the People’s Republic of China presents to due diligence practitioners. Without PRC specific expertise, your research may miss important information.
Some key challenges include:
- There are over 3000 different courts, each with its own court records, in the Peoples Republic of China. We routinely search over a dozen courts when we conduct our litigation searches. Depending upon the location of the subject, the number could be greater. A solid understanding of the People’s court system is vital to “getting it right” when conducting these searches.
- Often we are presented with a subject’s English name or a Pinyin translation of their Chinese name. The transliteration of a name from Pinyin (Roman characters) to Chinese can result in literally hundreds of possible spellings. This makes it nearly impossible to conduct proper research. When confronted with this situation, it is important to conduct additional research to try to uncover the Chinese name(s) and not rely on approximate translations. These can often be found in company records or other such sources.
- It is risky to rely upon Western database aggregators for database searches on Chinese subjects. These will only uncover Chinese subjects who have been reported on by their Pinyin name in English press or sanctions lists. What goes uncovered are the bulk of enforcement actions that are reported on in Chinese using the subject’s proper Chinese name.
ethiXbase China Due Diligence Solutions
In order to combat these challenges we have a number of solutions available to assist companies with conducting due diligence in the People’s Republic of China. These include:
China Due Diligence Reports
This report is a variant of our acclaimed Instant Due Diligence Report. Our clients have come to appreciate the ability to download inexpensive instant reports containing company registry information as well as database driven searches of adverse media, government sanctions lists, and politically exposed persons lists.
With Chinese company registry information not accessible through this solution, we offer our China version of this report which combines an offline search and addition of Chinese company registration information with the same suite of database driven searches. While not instant, these reports are available within 2 business days.
Enhanced Due Diligence Reports
These reports contain the “all that is knowable” information our clients have come to rely on. Combining information from searches of Administration of Industry and Commerce (AIC) offices, civil courts, regulatory agencies, and both English and Chinese media sites, we produce Enhanced Due Diligence Reports, along with analysis of any risks uncovered, within a brisk time frame of 8 business days.
In addition to these public record searches we have created our own Chinese enforcement actions database, searchable in Chinese characters, that does not exist anywhere else.
Our Premium reports contain “source commentary” or interviews with persons in a position to have an informed opinion regarding the subject(s). Our network of sources spans many industries and many regions within China.
We take the time to understand your requirements prior to engaging our investigators. You may need simple reputational analysis of a company and its principals or more focused inquiries. In either event, our well-developed network produces the results our clients rely upon.
To learn more about how ethiXbase can assist your business to conduct due diligence in China please contact us today.