Most buyers start supplier research the same way: a search, a supplier directory, a few messages, then a quotation that looks reasonable. The problem is that everything visible online is easy to copy. A polished website, a catalog full of nice photos, a polite English-speaking sales rep — none of it proves that anyone can actually make and ship your product.
Verification is not a single check. It is a sequence. Each step either builds confidence or ends the conversation before you lose money. Here is the order that works, what it costs, and what each step filters out.
Confirm the legal entity before you discuss the product
Ask for a photo or scan of the business license (营业执照). Every registered Chinese company has one. Read these fields:
- Full Chinese company name — the registered one, not an English trade name
- Unified Social Credit Code (18 characters)
- Registered address
- Legal representative
- Business scope
- Registered capital and registration date
Then verify it yourself on 国家企业信用信息公示系统 (gsxt.gov.cn), the official government database. It is free, Chinese-only, and slow, but it is the source. Qichacha and Tianyancha are commercial mirrors with better search; the paid tiers also show lawsuits, pledged assets, and branch offices.
| What to check | Where | Why it matters |
|---|---|---|
| License validity and USCC | gsxt.gov.cn | Fake or expired licenses are common in cold outreach |
| Paid-in capital vs. registered capital | Qichacha / Tianyancha | Registered capital is a promise; paid-in is what is actually in the bank |
| Business scope | License and gsxt | "Sales only" usually means a trading company, not a factory |
| Abnormal operations list (经营异常名录) | gsxt.gov.cn | Missed annual reports or a dead registered address |
| Lawsuits and enforcement records | Tianyancha, China Judgements Online | Unpaid debts and broken contracts show up here first |
| Customs registration | Ask the supplier, cross-check with a broker | A company cannot export legally in its own name without it |
One more thing: the bank account name must match the business license name exactly. If it does not, stop and ask why in writing.
Know whether you are talking to a factory or a trading company
Both can be good partners. A trading company often handles small orders, mixed product categories, and export paperwork better than a factory does. But you should know which one you are paying, because it changes pricing, quality control, and who is responsible when something goes wrong.
The question that settles it: "Can I see the production line on a live video call, and can I visit the site in person?" A factory says yes without hesitating. A trading company starts explaining that they work with "partner factories."
The business scope on the license helps too. Manufacturing companies usually list 生产 (production). Trading companies list 批发, 零售, or 销售 (wholesale, retail, sales).
Check the address, including the parts people skip
Open the registered address in Google Maps satellite view. Industrial parks look like industrial parks. A residential apartment building is not a factory, no matter what the catalog says.
Ask for a photo of the front gate with the company sign and street number visible. If the order is large, ask for a recent utility bill or lease agreement in the company's name. These are small things, but a supplier who cannot produce them is telling you something.
A live video walkthrough, then an on-site audit if it is worth it
A live video call is a good first pass and costs nothing. Ask for an unscripted walkthrough: workshop floor, machines running, warehouse, QC area, loading dock. Ask them to show a machine's nameplate and the date on a phone screen during the call. Edited clips and pre-recorded tours are worthless.
For larger orders, hire a third-party audit. SGS, TÜV, Bureau Veritas, Intertek, and QIMA all do factory audits in China. Budget roughly 250–500 USD for a one-day audit, depending on the city and scope. A useful audit covers:
- Legal entity confirmation against the license
- Factory floor, equipment list, and actual production capacity
- Number of workers and main production lines
- QC process and equipment
- Main customers and export markets
- Whether any part of the production is subcontracted
Order a sample, and test it if your product is regulated
Pay for the sample at cost. Do not accept a free sample that was made by hand in a different workshop than your production run.
If your product falls under safety rules — electronics, toys, food-contact items, textiles, cosmetics — send the sample to a lab. Ask which standard applies: CE, FCC, RoHS, REACH, CPSIA, LFGB. Certificates should be issued in the manufacturer's name with a report number you can look up on the lab's website. A supplier who offers to "put any logo on the certificate" has just told you that their paperwork means nothing.
Pre-shipment inspection is the highest-value money you will spend
A pre-shipment inspection (PSI) usually costs 200–400 USD per man-day and is done when production is finished and at least 80% of the goods are packed. The inspector counts, checks workmanship, tests function, and reports against an AQL standard — commonly ISO 2859-1, Level II, with defined limits for critical, major, and minor defects.
For big or complex orders, add an inspection during production. Catching a tooling error at 20% complete is far cheaper than catching it after everything is boxed.
Use payment terms as a verification tool
Payment structure protects you more than any document.
- Never pay a personal bank account. Ever.
- The account name must match the business license exactly.
- Hong Kong or offshore accounts are common with trading companies, but ask why and confirm which entity you are contracting with.
- Standard split: 30% deposit, balance after a passed inspection or against shipping documents.
- For large orders, use a letter of credit or an escrow-style service rather than straight T/T.
- If bank details change by email mid-order, call a known contact to confirm. This is one of the most common fraud patterns.
A supplier who insists on 100% upfront and refuses any inspection rights is not a supplier you want.
Run a small trial order before committing
The single most reliable way to verify a Chinese supplier is to place a small order and watch what happens. Not a sample — a real order, at a real quantity, with real money on the line.
Watch four things:
- Did they ship on the promised date?
- Was the paperwork correct — invoice, packing list, HS code, certificate of origin?
- Did quantity and quality match the approved sample?
- How did they handle the one problem that always appears?
A supplier who manages a 200-unit order well is a much safer bet for 20,000 units.
Red flags worth walking away from
- Prices far below every other quote for the same specification
- Company name changes between the quotation, the invoice, and the bank account
- English trade name that matches no registered Chinese entity
- Refusal of a live video call, or a tour that looks like stock footage
- Test certificates issued in someone else's company name
- Bank account in an unrelated third country with no explanation
- Pressure to skip inspection or "ship today if you pay now"
- Vague answers whenever you ask about capacity or production location
The sequence, with real costs
| Step | Typical cost | Time | What it filters out |
|---|---|---|---|
| License and public records check | Free | 1–2 hours | Fake companies, dormant entities |
| Live video walkthrough | Free | 1 day | Pure middlemen, no real facility |
| Sample order and testing | Product cost + shipping | 1–3 weeks | Poor workmanship, wrong materials |
| Third-party factory audit | 250–500 USD | 3–7 days | Weak capacity, hidden subcontracting |
| Pre-shipment inspection | 200–400 USD | 1–2 days | Short shipments, quality drift |
| Trial order at real quantity | Varies | 4–8 weeks | Everything the paperwork cannot show |
Not every order needs all six steps. A 3,000 USD order needs the license check, a video call, a sample, and a pre-shipment inspection. A 300,000 USD order needs all six.
When local help pays for itself
If you do not read Chinese, the official records are hard to use. Add a 12-hour time difference, a supplier who answers "yes" to every question, and small gaps that only make sense once you are on the ground — and the risk adds up quietly.
A local team can pull the company records, call the factory in Chinese, visit the site, sit in on the inspection, and tell you what the answer actually means for your order. Globesino handles supplier checks, factory and product inspections, sourcing, and delivery for overseas buyers who need someone on the ground in China. Tell us what you are buying and we will tell you what is worth checking before you pay a deposit.