It’s common knowledge that doing business in China or with Chinese companies can be complicated and risky. But did you know that among those risks is the real possibility that you may be dealing with an imposter, either a fake virtual company trying to pass itself off as the real company, or a worker who is not authorized by the company to be doing business with you.

These risks, more prevalent in China than in many countries, emphasize the need for thorough due diligence regarding your Chinese business partners before investing or entering into commercial transactions A vital step in such due diligence is hiring local legal counsel in China to verify the existence and authority of the Chinese company with whom you are doing business.