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Five ways that the English name of a Chinese company can be misleading

Five ways that the English name of a Chinese company can be misleading

by · 10/2/2020, 12:02:23 AM

What is the English name of a Chinese company? The answer to this question is not as simple as you think. This is because when Chinese companies register, they are all done in Chinese. Most Chinese companies do not actually need English names, but it is easy for companies dealing with foreign companies to choose English names.

In the verification process of a Chinese company, there are many ways to choose the English name of the Chinese company. In most cases, companies only need to translate their official Chinese company name into English. However, we did find that some Chinese companies deliberately chose English names, which may leave a misleading impression on their companies.

Why do Chinese companies choose other English names?

In China, the official company name (in Chinese) is actually very descriptive-they will tell you where the company is registered, the main industry, and the form of registration. In most commercial situations in China, there is almost no room for ambiguity. The company name must follow a fixed structure, which reveals a lot of information. For example, we can easily determine that the Chinese company "Henan Yuxin Reflective Material Co., Ltd." is a limited liability company (limited company) named "Yuxin" from Henan Province.

On the other hand, when Chinese companies trade overseas, they find that they have greater freedom to define their English identity. This may cause the English name of the Chinese company to be completely different from the official Chinese name.

We found that there are two main reasons why Chinese companies choose English names instead of direct translation:

a) Chinese is simpler than English. Imagine if Apple’s official name is "California Apple Consumer Electronics." If American companies must follow the naming conventions of Chinese companies, this is probably their official name. When the names of Chinese companies are translated into English, they usually sound clumsy and too long. Therefore, Chinese companies often choose abbreviated English names to make them sound better and more convenient. The shorter the name, the easier it is-the less space the name occupies on business cards, brochures, product labels, etc.

b) Brand considerations For many reasons (including cultural and commercial factors), many Chinese companies believe that adjustments should be made from the direct translation of English names. For example, Chinese electronics company Xiaomi may choose not to translate. Similarly, many Chinese consulting companies registered under the industry name "Enterprise Management Consulting" also refer to it as "Consulting" for short. In addition to the above reasons, it is a pity that the Chinese company chose another reason why the English company name does not match the Chinese company name-this is misleading the customer or concealing the nature of its business.

Here is an example of every suspicious British company naming convention:

1. Disguised registration place: For companies registered overseas, we often need to verify companies whose names start with "Shanghai", "Beijing" or "Shandong" and provide their domestic business addresses, but these companies do not Not registered here. These companies are usually established in Hong Kong or other regions. Offshore jurisdiction, but do not disclose this to customers. In many cases, offshore entities even hold offshore bank accounts in banks in mainland China to further cover up the true source of funds.

2. The nature of the camouflage occurs: Many trading companies that purchase from China want to directly cooperate with factories that produce their products, and try to avoid cooperation with middlemen. Unfortunately, we have found that in many cases, trading companies (which can be easily identified from their official Chinese names) ignore these details when placing product advertisements on many purchasing websites. Finding out whether a company is engaged in manufacturing is usually as simple as investigating the business.

3. The wrong claim that limited liability occurred in self-employed individuals, whether intentionally or unintentionally, I have seen many examples of wrongful Chinese self-employed individuals, including the end of "limited liability company". In many cases, this may just be due to poor translation or their lack of a good understanding of different types of company registrations in China. These two naming methods are obviously incorrect and have a misleading impression of the nature of the company.

4. Does not reflect the emergence of the company structure: When the owners of two or more independently registered Chinese companies call their companies a "group", there are usually multiple companies under a single ownership. In China, you can register as a "Group Co., Ltd." in an official group company. However, in many cases, we found that the apparent "group" entity has nothing to do with the government-there is no holding company, and one company is not a subsidiary of another company.

5. It has nothing to do with the official Chinese name: The English name chosen by many Chinese companies seems to be different from the official Chinese name. Nothing can stop them from doing this. This is actually a fairly common phenomenon. The following are some famous examples: -Lenovo (Chinese name: Lenovo/Liánxim:ng)-Tencent (Chinese name: Tencent/téngxn)-Warrior (Chinese name: Huili/HuíLII-stands for "Houjin")-Mingji (Chinese name :BenQ/míngj) Although some names have been changed for marketing purposes, irrelevant English names may cause difficulties with overseas customers and verification.

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