Columbus Day, which is celebrated on the second Monday of October each year in the United States, is a federal holiday that commemorates Christopher Columbus’ arrival in the Americas on October 12, 1492. While the holiday is controversial due to Columbus’ treatment of indigenous populations, it is also an opportunity to reflect on the origins of international trade between the US and other countries, including China.

Surprisingly, the US and China have a long history of trade that dates back to the 18th century when American merchants established trading posts in Canton, China. In fact, it was the trade of Chinese goods like tea, porcelain, and silk that helped to fuel the American Revolution by providing funding for the colonies.

In this blog post, we will explore the origins of trade between the US and China and examine the recent disputes over pandemic-related equipment purchases. We will also offer tips on how business owners can protect themselves when purchasing goods from China and what to do if they become a victim of fraud.

The 18th century saw an increase in trade between the US and China, with the two countries exchanging goods such as opium, silver, and silk. By the mid-19th century, the US had developed a thriving trade relationship with China that included the export of American cotton to China and the import of tea from China to the US. This continued until World War II when Japan’s invasion of China disrupted trade between the two countries.

Fast forward to the 21st century, and the US and China are once again major trading partners, with total trade between the two countries surpassing $560 billion in 2020. However, recent disputes over pandemic-related equipment purchases have put a strain on the relationship.

According to search data, there have been numerous disputes in Chinese courts over the past few years involving pandemic-related equipment purchases. In one example, a Chinese company sold more than 5,000 faulty ventilators to a hospital in Spain, leading to a lawsuit in Chinese courts. These lawsuits highlight the importance of conducting due diligence when purchasing goods from China and working with reputable suppliers.

So, what can business owners do to protect themselves when purchasing goods from China? First, it’s important to work with a reputable supplier who has a track record of delivering quality products. Business owners should also conduct due diligence by researching the supplier, checking references, and verifying the supplier’s business license and registration.

If a business owner does become a victim of fraud, there are several possible reasons. The first is that they have received fake goods. In many cases, suppliers will send substandard or counterfeit goods, even if they have been paid in full. The second possibility is that there was a problem with the payment, such as paying for goods that were never delivered.

Another common type of fraud is the use of fake certificates and documents. Suppliers may provide false documentation to make their goods appear more legitimate than they are. Finally, business owners may be charged an unreasonable price for goods, either through overbilling or incurring hidden costs.

If a business owner needs to take legal action, it’s essential to find a reputable Chinese lawyer who has experience in international trade law. An experienced lawyer can help business owners navigate the complex legal system in China and work to recoup any losses incurred due to fraud.

In conclusion, the origins of international trade between the US and China can be traced back to the 18th century, when American merchants established trading posts in Canton. While trade between the two countries has endured many challenges over the years, the total trade volume between the two nations continues to grow.

However, recent disputes over pandemic-related equipment purchases have highlighted the importance of conducting due diligence when purchasing goods from China. Business owners must work with reputable suppliers, conduct proper research, and verify documentation to avoid becoming victims of fraud.

If necessary, finding an experienced Chinese lawyer is also essential to protect oneself when navigating the complex legal system in China. By taking the right measures, business owners can safeguard themselves against fraud and continue to benefit from the rich trading history between the US and China.

Chinese Lawyer Abby Wang 

Partner of Landing (Shenzhen) Law Office
Specialize in the area of International Trade Law

Has acted for 100+ foreign purchasers and importers in mainland China litigation and arbitration. Has successfully mediated over 50 trade disputes between foreign purchasers and Chinese exporters.