Credit checks of Chinese companies

With a population of approximately 1.4 billion people, China is a huge market that Japanese companies cannot ignore. Compared to the past, barriers to trade have been reduced, and the number of small and medium-sized companies doing business directly with Chinese companies has increased. Nevertheless, there are always risks involved in international transactions. While large companies can spend money on credit management, small and medium-sized companies with limited human and financial resources have no choice but to take risk countermeasures based on human relationships.

There is an easy way to identify dangerous companies when doing business with Chinese companies. That is to check the China Trial Documents Network, which we will introduce here. This is an online site operated by the Chinese government that provides free access to documents from criminal trials, civil trials, administrative recommendations, claims for compensation, and more conducted in China. For your information, as of February 6, 2018, there are 42,379,849 registered documents. Why not check if there are any Chinese companies you are interested in?

Examples of surveys we have conducted

We recently conducted an investigation of a Chinese chemical manufacturer, Company K, with whom we were interested in doing business. The information we obtained from the company was limited to product information and basic corporate information, but nothing of particular interest, and the communication with the person in charge was smooth.

However, when we researched in Chinese court documents, we found that there were several court battles between 2015 and 2016, and one of them involved a case involving the purchase and sale of a company. Looking at the details of the court decisions, there were many descriptions that seemed to be problematic for the company as a corporate structure, and we found it difficult to trust the company and were able to decline the transaction application before getting into trouble.

Advantages of viewing court sentences

Usually, corporate investigation reports, which are purchased for a fee from private credit research companies, are mainly numerical, describing sales, profits, retained earnings, and other business conditions. However, court documents contain detailed information about the details of the problem, the person in charge, and the response to the problem, revealing the other side of the company. When making an important transaction, be sure to check the court documents network!

Investigation Procedures of the China Trial Documents Network

1. Open the site.

Open the website of China Trial Writing Network. Site URL : http://wenshu.court.gov.cn/ Since this is a Chinese site, the response will be slower than that of the Japanese site, but the following screen will appear.

2. Enter the name of the company in the search field and search.

It is important to note that the input must be in simplified Chinese characters. If you use Japanese Kanji characters to search for a company name, it may not be found correctly. Always enter the official company name in simplified Chinese characters. Please note that the trailing charactersLtd.may be omitted. Once you have entered the name of the company, click theSearch."button to start the search.

3. Check the search results.

The left column shows the classification of the retrieved sentences and the number of applicable cases. You can narrow down your search by dispute content, dispute location, court that tried the case (Supreme Court, people's court, lower court, etc.), trial year, trial progress (first trial, second trial, retrial, etc.), and results (judgment text, mediation, decision, notice, etc.).

4. Confirm the details of the judgment.

Click on the title you are interested in to see the details of the ruling.

We can also conduct surveys on your behalf.

On behalf of companies that cannot read Chinese, we can also provide a service to list a summary of court sentences in Japanese. If you require this service, please apply below.
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