The Chinese Thirty Percent Fraud

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A large number of Chinese exporters and trading companies are reportedly engaged in mass fraud of international buyer and customers, which is gradually reaching the alarming level as infamous ?Nigerian Fraud? or ?Cameroon Fraud? in today?s world. According to specific evidences, Chinese exporters demand 30 percent of the amount of the ordered goods in advance either through TT or?Western Union. This has already spread amongst ninety-nine percent of the Chinese suppliers as virus, while major segment of the Chinese suppliers decline to accept letter of credit for export. Hundreds of international traders and business houses are becoming victims of such Chinese ?Thirty Percent Fraud?, which are in most cases ignored by the Chinese authorities, similarly as those in Nigeria, Cameroon and some of the ill-reputed African countries. Chinese government, which has achieved remarkable progress in uplifting country?s economy to an enormous level just within the span of twenty plus years, are reluctant in combating such fraud rackets in their country, for reason unknown. Such activities of the fraudulent Chinese ?Thirty Percent Fraud? rackets are greatly dampening the image of the People?s Republic of?China?as well as its government and law enforcing agencies.
Only in June, at least fifty cases of such fraud by the ?Thirty Percent Fraud? racket took place in various parts of?China, includingShenzhen,?Fujian?and Xingtai (in?Hebei?Province). In one of the many cases, a Chinese company named Pengfei (or Peng Fei) Electronic Technology Company Limited, 6F?Building 201 Shenkeng Industrial Park, Henggang, Longgang District, Shenzhen, China sold Chinese tablet PCs to a customer against the payment of US$ 2,850. The company though promised to ship the consignment within 3 days of receiving the payment, after almost one week of receiving the full payment into its Chinese bank account, Pengfei (or Peng Fei) Electronic Technology Company Limited provided a fake tracking number of DHL only on July 21, stating the goods were already shipped (DHL Tracking Number: 6900656770). After the buyer discovered the tracking number to be fake the Chinese company quickly made up another story stating it had problems in shipping the Tablet PCs through DHL and provided another false tracking number (RA506193081CN) to the customer, asking them to track the shipment onhttp://intmail.183.com.cn/. When the second tracking number was also found to be false, the Chinese company?s ?Sales Manager? Celina turned off her mobile number +86-137-984-15150 and stopped communicating with the buyer. Seeing no other alternatives, the buyer reported the matter with the Chinese authorities, and till filling of this report, no action had been initiated against the fraud racket by the authorities.
In another incident, a Chinese company named Xingtai Hengsiman Trading Co., Ltd, Room 402, Unit 2, 4/F, Building 21, A Area, Fushi Road, Qiaoxi District, Xingtai City, China, Phone: +86-319-2581455, Fax: 86-319-2581400, Web:?http://www.hsmgs.com/,?signed an agreement with a buyer for supplying 15 tons of edible oil. Accordingly the Chinese company received US$ 8,000 as advance payment and was supposed to receive the remaining amount immediately before the shipment. The payment of US$ 8,000 was made on June 3, 2012. But right after receiving the advance payment, the Chinese company Xingtai Hengsiman Trading Co., Ltd?s ?Manager? Frank Gao informed the buyer that it has problems in arranging Shangjian Certificate (Quality, Quantity approval of Ministry of Commerce of the People?s Republic of?China). Under such circumstance, when the buyer understood that Frank Gao of Xingtai Hengsiman Trading Co., Ltd has fraudulently received the advance payment of US$ 8,000 giving false promise of making shipment and later on receiving the amount came up with the story of not being able to manage the Shangjian Certificate, representatives of the buyer rushed to Xingtai to meet Frank Gao and his associates and demanded the amount to be refunded. At this stage, Frank Gao made another story stating the refunding would take ?some time? and promised the buyer of refunding the money soon. But, till writing of this report, Frank Gao (pretending to be manager but actually the owner) of Xingtai Hengsiman Trading Co., Ltd has been continuing to make numerous false promises and silly excuses and refraining from refunding the money he received from the buyer.
It may be mentioned here that, Xingtai Hengsiman Trading Co., Ltd is a ?Gold Supplier? of?http://www.alibaba.com/?(Alibaba), and the website claims to have inspected the office of Xingtai Hengsiman Trading Co., Ltd through its own representatives. It may also be added here that,?alibaba.com?has enrolled a large number of similar fraudulent companies as their ?Gold Suppliers? without carefully verifying the business integrity of the companies concerned, simply because, Alibaba mainly focuses in receiving the membership fees from the companies irrespective of its good or bad reputation. Due to such massive presence of fraudulent companies on?alibaba.com, many of the international buyers are already considering this internationally known Chinese business web portal as the biggest avenue of Chinese fraudsters and criminal rackets. Critics have already started comparing?alibaba.comas very famous fairy tale named ?Alibaba and forty thieves?, while this web portal is the avenue of thousands of thieves from China and other countries.
Commenting on the already traced fraud of Pengfei (or Peng Fei) Electronic Technology Company Limited as well as that of Xingtai Hengsiman Trading Co., Ltd, business leaders are suggesting that the Chinese authorities need to initiate immediate and stern actions against these fraud-gang in order to save the reputation of its genuine business communities. It says, ?China?is a disciplines nation and it is not expected that hundreds of fraudsters will operative from within its territory and continue cheating international customers and business houses.
Source: ?Vinod Mehta
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