Bring a friend. Never shop in China Town alone. Shopping in China Town by yourself will make you far more susceptible to scams.
Inspect any merchandise thoroughly before purchasing it. Remember that many merchants in China Town will try to sell you cheap knockoffs of popular brands. If the merchant gives you a difficult time about this, move on. There's probably a good reason for the person not letting you inspect the merchandise.
Act as if you have been to China Town before even if you never have. If you look like you're new to the area, prepare to be treated as such. Instead, look and sound confident. Perhaps while talking with the merchant you could mention a previous trip you have made to China Town before.
Lie to the merchants in China Town about finding cheaper prices. For example, if you are offered a watch for 30 dollars, say to your friend that you saw the same watch for 25 dollars just a few blocks down the street. The merchant will probably lower the price on the watch.
Avoid going into a private place with a merchant. Many times, the person will tell you to "follow them" in order to purchase your merchandise. Once you do this, however, you may find that the price has rapidly increased. You also may find that the merchant is not willing to let you simply walk away from the sale.
Never give to a foundation or organization asking for money on the streets of China Town. As somebody who's canvassed in Manhattan, I can tell you that many legitimate organizations use street canvassing as a way to raise money. None of those places do so in China Town, though.
