The scam goes as follows: a project leader wants to build a business relationship with you. Typically, you meet the project leader in a high-end hotel where you will review the contract and the site plans. Afterward, you will be asked to prepare an exorbitant gift for whomever.
The most important part is they will ask you to provide your banking information to wire the first 20% of the project expenses due prior to starting the work. After the money is received, they disappear. Therefore, American and European service companies should always do basic due diligence on potential partners before entering China in order to avoid any potential risks. The classic China scam has been done repeatedly because many trusting people will follow a Chinese project leader without doing any due diligence.