FREQUENTLY ASKED QUESTIONS

Radar China is a Smart System to audit your suppliers in China. We integrate the commercial, legal and financial information of more than 200 million companies in mainland China. Our cloud based network compiles this information from key sources such as The Administration of Industry and Commerce, The National Enterprise Credit and Court Information Systems, and The State Intellectual Property Office. By using process automation, we track and synchronize the information from the different databases and set up automatic triggers and alarms for the companies we audit for our clients. We offer a smart background check with full visibility so you can manage your risks and make decisions in a predictive or adaptive way.

WHAT ARE THE KEY VARIABLES THAT ARE CHECKED IN AN AUDIT?

We focus on verifying the following key variables:

1. Company registration

2. Business scope

3. Registered staff

4. Organizational structure

5. Commercial records

6. Debt

7. Lawsuits

8. Quality complaints/Claims

9. Fines

10. Intellectual Property

HOW DO YOU CLASSIFY THE COMPANIES THAT YOU AUDIT?

We classify the audited companies by letters. They are divided into 4 categories: A, B, C and D, according to their profile. Click here to see more details.

WHAT IS A CRITICAL LAWSUIT?

When the two or more parts involved in a conflict are unable to reach an agreement either by friendly negotiation or by arbitration, a person or company has the right to file a lawsuit with the court according to the signed sales contract or to the corresponding jurisdiction. All lawsuits are registered in the Chinese public databases and in our audit report with their corresponding details. A lawsuit is considered critical when it represents a risk concerning the trustworthiness of a company because of the lack of integrity in their commercial/legal actions, and/or when it represents the inability of such company to provide a product that fulfills all the requirements and quality standards in a stable way.

WHAT IS BAD DEBT?

Bad debt is one of the key parameters to classify a company as untrustworthy. It happens when a company is unable to pay the person/company suing them, according to what the court has established, due to the damages and losses they have instilled. Thus, bad debt is an indication of a company’s weak financial situation. All bad debt is recorded in the database of Credit China, affecting the reputation of the company and including it in the National Blacklist because it is unable to duly pay its debts. Our reports include the complete information of the audited company’s bad debt.

WHAT IS A FINE FOR CRITICAL PROBLEMS?

The Chinese government performs systematic audits to all companies and fines those that have broken the law or failed to meet the quality standards of a product. All fines are registered in the public databases and in our audit report with their corresponding details. There are several types of problems that can lead to fines by the government, including those related to environmental, regulatory or product quality reasons, amongst others. When the problem represents a risk from the audited company to provide the client with a product and service in optimal conditions and in time, it is classified as a critical problem and a special remark is made in the audit report.

WHAT ARE REGISTERED EMPLOYEES?

Registered employees are those that are legally hired by a company by means of a work contract. In addition to payment of the salary to these employees, the company also pays all the related social welfare, provisions, maternity/paternity leaves, vacation time, etc. The fact that a company legally hires their employees is a good sign of a healthy company culture. The quantity of registered employees is proportionate to the size of the Company.

WHAT IS INTELLECTUAL PROPERTY?

Intellectual property includes but is not limited to the trademarks, patents, software rights and website registrations that a company owns. This attribute is related to the company’s level of organization and activity in the areas of legal registries and research and development.

DO YOU PROTECT THE CONFIDENTIALITY OF THE INFORMATION DISCLOSED BY YOUR CLIENTS?

RADAR CHINA undertakes the responsibility to maintain the proper reservation, not to disclose to third parties or make use of third parties or for operations other than the execution of the service provided, of any technical or commercial information obtained due to the execution of the service provided or as disclosed by the client.

WHAT IS THE SCOPE OF YOUR AUDIT SERVICE?

The audit service covers all companies registered in Mainland China (not including Hong Kong, Macau or Taiwan). The information provided by RADAR CHINA is only meant to support the client’s decision making. RADAR CHINA is under no circumstance able to make decisions for its clients. The clients recognize that they act independently in their decision making. The reports issued by RADAR CHINA do not certify or confirm the quality of the products provided by the supplier in China or their shipment, nor do they discharge or release the supplier in China from their commercial, legal or contractual obligations with their clients.

WHAT IS YOUR WARRANTY POLICY?

The information provided by RADAR CHINA is true according to the public databases of the People's Republic of China. The data and information of the audited company are subject to change over time. The only express or inferred guarantee for the products and / or services acquired or contracted by the client with the audited company, is the original guarantee offered by the legitimate manufacturer or the supplier of the products and / or services under the terms and conditions thereof. RADAR CHINA will not be implicitly or explicitly liable for non-contractual civil liability arising from damages that may arise from the product or service purchased; In addition, RADAR CHINA will not be subject to indirect damage or loss of revenue from the given product or service.

WHAT IS THE DIFFERENCE BETWEEN A ONE TIME AUDIT AND CONTINUOUS MONITORING?