New Zealand Trade and Enterprise has warned local companies to watch out for Chinese scams targeting Kiwi businesses.
In the same week as Chinese Premier Wen Jiabao's visit to to Wellington for meetings with Prime Minister Helen Clark, the government agency has issued a fresh warning to local firms againstbeing lured to China on phony business deals, during which they can get stung for "gifts" such as US$20,000 ($33,000) cash and expensive Rolex watches.
The alert is outlined in an NZTE internal memo sent to staff on Monday. The message will also be released through NZTE websites and newsletters, the agency said.
Only a small percentage of trade inquiries from China are said to be fraudulent, according to the memo by NZTE's China market manager Pat English.
A similar alert was issued last year but English said that in the last few weeks there had been a sharp increase in the number of Kiwi firms approaching NZTE wanting help verifying approaches from China.
"We've been checking back on a number of these and they haven't been genuine," said English, a former trade commissioner to Beijing and Shanghai.
He said NZTE had tracked more than 30 approaches recently.
This week's memo outlines a "pattern of activity" involving Australian, Irish and New Zealand companies. Firms are contacted by someone in China who promises a large order, but the contract has to be signed in China.
Once there, firms are told an expensive gift to the Chinese CEO is required before the deal can be signed. The bogus businessmen disappear once the gift is handed over.
English said only two New Zealand companies - manufacturers he would not name - had actually travelled to China in pursuit of a bogus deal. They had been asked for watches but both declined to hand over gifts.
English said it was untrue Chinese people could not travel abroad to do business and it was not a Chinese custom for expensive gifts to be given. NZTE's website says gift giving is standard but gifts should be "small and inexpensive".
