The English Names of Chinese Companies: Problem and Best Solution

Introduction:

In today’s global trade environment, accurately identifying and understanding the identities of international business partners has become crucial. A significant problem for many foreign enterprises trading with Mainland Chinese companies is the discrepancy: ‘Why does the English translated name of a Chinese company, found through queries, not match their actual English name used?’ This issue is more than a minor inconvenience; it strikes at the foundation of trust and communication in international trade. This article seeks to explore the problem of using the English names of Chinese companies in international transactions, the challenges behind it, and propose a series of effective solutions.

Challenges Faced by the English Names of Chinese Companies

Several challenges arise in accurately understanding and using the English names of companies from Mainland China in international transactions, increasing operational difficulties for foreign enterprises and affecting the establishment of trust and smooth business processes.

The English Names of Chinese Companies- The Boss is surprised

Legal Constraints under Chinese Company Law

According to Chinese company law, all enterprises registered on the mainland must use their Chinese names as their sole official names. This regulation means that English names do not carry legal weight in official documents and legal transactions, leading to potential difficulties for foreign partners in verification and reference.

Large Number of Registered Chinese Companies

Mainland China has tens of millions of registered companies, and the use of English names among these companies is not standardized, resulting in significant information discrepancies. Without a unified standard, even minor translation differences can lead to completely different English name interpretations.

Differences in English Translation Names of  Chinese Companies

This issue, encountered by our Company Search service, arises because many companies’ English names are either direct translations of their Chinese names or chosen by the companies themselves. This leads to significant discrepancies between official translation names and the English names actually used, complicating identification and verification in international transactions.

Limitations of Official Records

Official databases, such as the National Enterprise Credit Information Publicity System, typically only record the Chinese names and Unified Social Credit Codes (USCC) of enterprises, lacking records of official English names. This makes finding accurate corresponding information challenging when English is needed for transactions or inquiries.

Foreign Trade Registration Certificate in China

Only Chinese companies engaged in foreign trade need to apply for the “Foreign Trade Registration Certificate” and register their official English names. This means many non-foreign trade companies participating in international transactions may not have official English name records.

Chinese Bank Account Issues

Even Chinese companies or WFOEs (Wholly Foreign-Owned Enterprises) that have not applied for the ‘Foreign Trade Registration Certificate’ must confirm their English name with the bank when opening an account and needing to receive foreign currency transactions. The English name must be broadly consistent for the bank to approve. However, these details are difficult for third parties to access, and companies can negotiate with banks to change their English names, which indeed poses a significant issue.

Challenges in Third-Party Verification

Third-party institutions, like customs in other countries, may face difficulties verifying a company’s identity due to inconsistencies in English names. Especially when the English names encountered by companies in the importing country through invoices or other business documents do not match the official data found, complicating the verification process and affecting smooth business cooperation.

Case Study Analysis of Chinese Companies’ English Names

To illustrate the potential problems caused by the English names of companies from China in international transactions, here’s a specific example. Some countries’ customs used GWBMA’s Company Search to find a mainland Chinese exporting company. They discovered that although the company’s Chinese name matched exactly with what was provided to customs, the English name differed from the English translation name found in Company Search.

This situation occurs because, in mainland China, the Chinese names of companies are registered and used according to national legal regulations, with uniqueness and legal validity. However, English names do not have the same legal constraints, and different translation methods or English commercial names chosen by the companies themselves can lead to discrepancies in English names.

Companies' English Names Search

How International Officials Can Resolve This Issue Through the Unified Social Credit Code (USCC)

In such cases, the most direct and effective solution is to refer to the company’s Unified Social Credit Code (USCC). The USCC, as a unique and officially recognized code, provides a unique identifier for each company, regardless of Chinese or English names. By using the USCC, international partners and third-party institutions like customs can accurately identify and verify a company’s identity, avoiding confusion and misunderstandings caused by name discrepancies.

Introducing the USCC as a verification tool not only ensures the accuracy and reliability of information but also establishes a more robust foundation of trust in global trade. Therefore, both companies themselves and their international partners should rely more on the USCC for identity verification and information verification.

How to Find Chinese Companies’ English Names Through the Best Solution

 MANUAL VERIFICATION REPORT

Facing the inconsistency issues of mainland Chinese companies’ English names, we believe the most effective solution is provided through GWBMA’s MANUAL COMPANY VERIFICATION REPORT. Unlike our INSTANT AUTOMATED REPORT, which can automatically complete queries within three minutes but might not provide the accurate English name of the company, the Manual Company Verification Report involves direct intervention by our professional team. They conduct in-depth research and verification of detailed company information, including its official Chinese name and the corresponding accurate English name. This process may require more time and resources but ensures that the information provided to clients is accurate and reliable, especially for those involved in international trade and in need of precise company identity confirmation.

This manual verification service enables GWBMA to help resolve confusions caused by English name discrepancies, ensuring overseas importers can accurately identify and verify their mainland Chinese trading partners. This not only enhances the transparency and trustworthiness of transactions but also promotes smoother international business cooperation.

Conclusion:

Resolving the issue of English name usage by Chinese companies in international transactions requires not only legal and policy efforts but also the professional services provided by third-party platforms like GWBMA to bridge the information gap, ensuring that both trading parties can communicate and transact based on accurate and reliable information. Through the solutions outlined above, especially GWBMA’s Manual Company Verification Report, international partners can more effectively identify and understand their mainland Chinese business partners, thereby establishing a stronger foundation of trust and cooperation in the global market.

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