SinoTradeRescue.com Issues Alibaba Gold Members Scandal Alert

Online, April 4, 2011 (Newswire.com) - SinoTradeRescue.com (STR) issued a warning to some of its clients who are also Alibaba members to carefully consider the factories with which they do business. According to the Forbes Magazine, April 11, 2011 edition article titled "Alibaba's Jack Ma Fights To Win Back Trust" by Gady Epstein, Alibaba Group recently announced the scandal and fired 100 salespeople for cheating or facilitating fraud of foreign merchants. Victims of the scandal sent money to Chinese factories which were certified on the Alibaba website as Gold Suppliers and then never received their shipments.

Sino-Trade Rescue's parent company Primal Group Ltd's Vice President, Anya Sapritsky said "The recent scandal at Alibaba doesn't mean Alibaba is a bad company; they are holding their managers accountable and terminating those involved in the fraud. They are still the most visited portal. But it does mean buyers need to be aware of what real due diligence is about. Additionally, goods inspection and attention to detail in face-to-face business can never be replaced. We hope Alibaba and STR will continue to enjoy a symbiotic relationship between online access to choice, and on the ground service."

According to STR officials, due diligence is still the biggest issue facing foreign buyers in the Chinese market for the foreseeable future. Another way STR recommends reducing risk is by having STR act as a 3rd party escrow bank service out of its Hong Kong headquarters. Clients' funds are only released to a factory after goods are verified to be at a stage specified by the client - for example, on a truck, at the dock, or on a ship.

SinoTradeRescue.com issued the warning to its members as part of their Chinese sourcing trade rescue service which aims to reduce risk in international trade transactions. According to Kamal El-Wattar, President of Primal Group Ltd., "Most of our clients are also B2B portal members (for example on Alibaba, TradeKey, Made-in-China or other B2B portals). Proper due diligence is essential - it's a key service we offer our customers as part of our standard service. We do site inspections and check the paperwork; we even check government tax records on the factories. Even if a client has already engaged with a source in China, it's not too late to pulls us in for due diligence." For STR's Premier and VIP members, as well as its STR Office (Outsourced Procurement Office), a factory visit is conducted free of charge.