March. 2005

                                                    http://www.china-investigation.com

Recently the experts of Beijing Economic Law Association are demonstrating the “Minor Arbitration” and the feasibility of its implementation in China . Since the “Minor Arbitration” is quickly and conveniently to be conducted by the simple procedure, it has been adopted by many foreign countries but not by China . According to the Association, once the “Minor Arbitration” is approved and permitted by the government, it will be carried out initially in the citizens’ residential area.

Steele has planned to hold a seminar about the professional techniques of insurance claims investigation for the insurance companies in Tianjin and all insurance organizations are welcome to join us!

In March Steele’s insurance claims investigators exposed an insurance fraud case and accordingly saved a great amount of loss for the client.

By the invitation of the Law School of Peking University, the President of Steele will attend the “Steele Scholarship Ceremony” at the end of March, on which he will give a lecture to the students on the topic of “Business Investigation and Enterprise Risks Management”.  

The Ministry of Commerce announced the <Administrative Methods on the Foreign Investment in Tenancy Industry>, which included 23 articles, prescribing in the details of the investment manners, audit and approval procedures, operation rules and the supervision, and it has been put in force from March 5, 2005.

In the morning on March 2, 2005, the SMS was firstly notarized by the Dongcheng Notary Public Office to be a preserved proof. Accordingly once the SMS in the mobile phone is kept by the legal method, it may have the qualification to be used as the evidence for litigation.

Huatai Life Insurance Company had been approved by the China Insurance Regulatory Commission and opened in March, which is the first nationwide life insurance company invested by the first property insurance company in China.

The 22nd World Congress on Law will be held from September 4 to 10, 2005 in Beijing and Shanghai for the subject of “the nomocracy and the internationally harmonious society”.

Polygraph column

The Psychological Base of the Polygraph Examination

In general, the polygraph examination relies on three psychological process of the human being:

A.      The psychology of knowledge

As far as an important thing is concerned, it can make a long memory in the human’s pallium, some even unforgettable forever. Once it is mentioned, the memory will act on the human’s brain, resulting in an intensively psychological stimulation and accordingly leading to a series of physiological changes in the body. Defined as a conditioned reflex, it cannot be controlled consciously by the human.

B.      Psychology of lying

When a human is lying, a series of psychological activities are operating in his body and reflecting a consuming self-preservation. Consequently it forms a heavy pressure and complex psychological activities, which bring the abnormal physiological reactions.

C.     Psychology of tropism

Different persons have various psychological tropisms. Normally a human being’s mind always concentrates on the things he concerns most. On the base of the pretest interview, it will be showed in the practical examination that the psychological tropism of an involved person is obviously different to that of an irrelevant person.

The defects in the management and administrative system result in too many defaults constantly occurring in international trade. Moreover many companies do not want to reveal such matters and accordingly make it difficult to disclose the frauds in time. Day after day, the default in international trade becomes an indiscoverable matter to be controlled. To solve the problem thoroughly, it is necessary to advance and scientize the management by establishing a comprehensive system containing the prevention, monitor and control of business risks step by step and thus avoiding the default.

1.To improve the quality of the employees in charge of the international trade. The enterprise should pay attention to the trainings in business risks prevention, which are more important to the recruits. At the same time the commercial chamber should take the responsibility of providing consultation services for the import and export enterprises in its industry, thereby assisting them in the market expansion and risks management.

2.To set up a standard operation procedure to control the risks in international trade. The main measures include both strengthening the interior management and conducting the due diligence investigation on the foreign companies. On the base of the experience, the default will decline 50 percent if an enterprise keeps on doing due diligence investigation on the new clients while doing regular research on the old clients or having them investigated when some suspicious signs appear.

3.The international trade enterprise should insure the export credit insurance against the uncertain commercial risk.

4.To the default over three months, the enterprise should press for the payment. Once the other side does not pay on time and the enterprise cannot retrieve the payment by itself, it should at once seek for the exterior supports to solve the problem (by arbitration, litigation or other legal ways. The experience indicates that three-month is such a crucial term that there is still a chance for the enterprise to remedy the default just over the term and the loss can be reduced by 70 percent.

5.To strengthen the legal consciousness and learn to deal with the problems by legal  methods. It is the       embodiment of legal relations concerning different rights and liabilities, for instance each mode of the trade, each stage of the procedure and even each article of the contract. Consequently it is the rule to engage in the international trade complying with the laws and to fulfill the contracts strictly.

Previous      Back      Next