CONCENTRATION OF RISK

9 Months Ended

Sep. 30, 2022

Risks and Uncertainties [Abstract]

CONCENTRATION OF RISK

NOTE 17 - CONCENTRATION OF RISK

Risk of doing business in China

The Company conducts its operations and generates its revenue through its Beijing VIE in the PRC. Accordingly, economic, political, and legal developments in the PRC will significantly affect the Company’s business, financial condition, results of operations and prospects. The PRC economy is in transition from a planned economy to a market-oriented economy subject to plans adopted by the government that set national economic development goals. Policies of the PRC government can have significant effects on economic conditions in the PRC. While the Company believes that the PRC will continue to strengthen its economic and trading relationships with foreign countries and that business development in the PRC will continue to follow market forces, there is no assurance that this will be the case. The Company’s interests may be adversely affected by changes in policies by the PRC government, including:

· changes in laws, regulations, or their interpretation;

· confiscatory taxation;

· restrictions on currency conversion, imports or sources of supplies, or ability to continue as a for-profit enterprise;

· expropriation or nationalization of private enterprises; and

· the allocation of resources.

Concentration of credit risk

The Company places its cash with a financial institution with a high-credit rating. Cash and cash equivalents as of September 30, 2022 was $4,792. A depositor has up to RMB 500,000 insured by the People’s Bank of China Financial Stability Bureau (“FSD”) if the bank fails. While management believes that the financial institution is of high credit quality, it continually monitors its credit worthiness. The Company has no uninsured cash balances as of September 30, 2022.

Foreign currency risk

The RMB is not a freely convertible currency. The State Administration for Foreign Exchange, under the authority of the People’s Bank of China, controls the conversion of RMB into foreign currencies. The value of the RMB is subject to changes in central government policies and to international economic and political developments affecting supply and demand in the China Foreign Exchange Trading System market.

Concentration of supplier risk

The Company’s utilizes various suppliers. There were two suppliers that accounted for is 86% and 14% of total purchases for the nine months ended September 30, 2022.

One supplier accounted for 97% of total purchases, for the nine months ended September 30, 2021.

There were no accounts payable balances owed to these suppliers as of September 30, 2022 and December 31, 2021.

There were no suppliers who accounted for more than 10% of total purchases for the three months ended September 30, 2022 and 2021.

Major customers

There were no customers who accounted for more than 10% of total revenue for the three and nine months ended September 30, 2022 and 2021.