You found a supplier on Alibaba or met one at a trade show. The price looks good, the sales rep replies fast, and they promise quick delivery. But before you wire a deposit, you want to know: is this company real? Can they actually deliver? What happens if the goods are wrong?
Most Chinese suppliers are legitimate. The bigger risk is not a scam—it's miscommunication, quality drift, and delays that cost you customers. Here is a practical way to verify a Chinese supplier before ordering.
1. Check the business license
Every legal company in China has a unified social credit code. Ask your supplier for a copy of their business license. It's a one-page document with Chinese text. Look for:
- Company name – in Chinese. The English name may be different.
- Unified social credit code – 18 digits. This is their national ID.
- Legal representative – the person legally responsible.
- Registered capital – not the same as paid-up capital. A company with 10 million RMB registered capital may have only paid in 100,000 RMB.
- Business scope – does it include manufacturing or trading of your product?
- Registered address – is it an office, a factory, or a residential apartment?
- Date of establishment – a company founded last month carries more risk.
You can verify the license on the National Enterprise Credit Information Publicity System (gsxt.gov.cn). The site is in Chinese, but you can use a browser translator. Third-party apps like Qichacha and Tianyancha also provide this data, sometimes with English interfaces. Check if the company has any 'abnormal operations' status or missing annual reports. Those are warning signs.
Red flags: business scope doesn't match the product, address is a residential building, company is less than a year old, or they refuse to share the license.
2. Find out if they are a factory or a trading company
Many suppliers on B2B platforms call themselves factories. Some are, some are not. Trading companies are not automatically bad—they can source from multiple factories, handle consolidation, and offer lower minimum order quantities. But you need to know who you are dealing with.
| Signal | Factory | Trading company |
|---|---|---|
| Business scope | Includes 'manufacturing' | Only 'trading' or 'sales' |
| Address | Industrial zone, factory floor | Office building or business center |
| Product range | Narrow, focused | Wide, many unrelated products |
| Technical questions | Answers with specifics | Deflects or asks the factory |
| MOQ | Often higher | Often lower |
| Customization | Can explain process | May need to check |
To confirm, ask for a live video tour of the production line for your specific product. But be careful: some trading companies stage a fake factory tour. A better option is a third-party factory audit. An auditor visits the address, checks production lines, and reports back. You can also ask for the factory's business license if they claim to be a factory. If the license doesn't include manufacturing, it's a trading company.
3. Check export records and certifications
Ask if they have exported to your country before. Some suppliers can provide customs export records or a summary of shipments. If they hesitate, that's not always a red flag—many small factories don't track this. But it's useful information. If they show bills of lading or customs declarations, check that the exporter name matches the supplier's company name. If it's a different company, ask why.
Certifications matter more. Depending on your product, you may need CE, RoHS, FDA, ISO 9001, or other marks. Ask for a copy of the certificate. Then verify it with the issuing body. Look at:
- Certificate number
- Scope of certification (does it cover your product?)
- Expiry date
- Issuing organization
Don't accept a PDF alone. A real certificate can be checked online or by contacting the issuer.
4. Test communication and technical knowledge
Before you order, ask detailed questions. A good supplier will answer clearly. A bad one will avoid specifics.
Questions to ask:
- What is your monthly production capacity for this product?
- What is the lead time for 5,000 units?
- What are the tolerances for this part?
- What testing do you do during production?
- Can you customize the packaging? What is the cost?
- Who are your main customers in my region?
Red flags:
- Vague answers or constant 'no problem'
- Salesperson doesn't know the product
- Refuses a video call or factory visit
- Pushes you to pay quickly
- Asks for payment to a personal account
- Changes bank details at the last minute
Ask for a video call with the engineer or production manager. If they only let you talk to sales, that's a yellow flag.
5. Order samples and arrange an inspection
Never skip sampling. Order a sample, pay for it, and test it yourself or with a lab. If the sample is good, place a trial order. For the bulk production, arrange a pre-shipment inspection. This is not a factory audit—it's a check of the finished goods before they leave China.
Inspection companies like SGS, BV, TUV, or Intertek can do this. You can also hire a local QC firm. The inspector checks:
- Quantity and packaging
- Labels and markings
- Workmanship and defects
- Function and safety
- Compliance with your specifications
Most inspections use AQL (Acceptable Quality Limit) standards. You can specify the AQL level. A pre-shipment inspection costs a few hundred dollars. It can save you thousands in returns, chargebacks, and lost customers. Make sure the inspection happens when 100% of goods are packed and ready to ship. Don't let the supplier ship before you approve the inspection report.
6. Verify bank account details
This step is where many buyers lose money. The bank account name must match the company name on the business license. If the supplier asks you to pay a personal account or a different company, stop. Call the supplier using a phone number from their official website—not from the email. Confirm the bank details verbally.
Watch for last-minute changes. A common scam is an email that looks like it's from the supplier, saying the bank account has changed. Always confirm by phone before sending money. If they use a Hong Kong company or offshore account, that's common for trading companies, but you need to verify the relationship. Ask for a bank account certificate or a letter from the bank.
7. Get a proper contract
A proforma invoice is not a contract. Ask for a sales contract in English and Chinese. It should include:
- Product specifications and quantity
- Unit price and total amount
- Payment terms (e.g., 30% deposit, 70% before shipment)
- Delivery date and shipping terms (Incoterms like FOB, EXW, CIF)
- Inspection clause and quality standards
- Penalties for late delivery or defective goods
- Dispute resolution method
If you don't have a Chinese contract, ask a local lawyer or sourcing agent to review it. A few hundred dollars for legal review is cheap compared to a shipping container of wrong goods.
8. Use a local team when you can't be there
You can do all of this remotely, but it takes time, language skills, and knowledge of Chinese business practices. A local team can visit the factory, check the business license, negotiate in Chinese, arrange inspections, and handle logistics. That's what we do at Globesino—we act as your eyes and ears in China so you can order with confidence.
Quick verification checklist
| Step | What to check | Red flag |
|---|---|---|
| Business license | Credit code, scope, address, annual reports | Refuses to share, residential address |
| Factory vs trading | Production line, business scope | Claims factory but scope says trading |
| Certifications | Verify with issuer | Expired or fake certificate |
| Communication | Technical questions, video call | Vague answers, sales-only contact |
| Samples | Test quality and specs | Poor sample, refuses sample |
| Inspection | Pre-shipment AQL inspection | Refuses inspection or ships early |
| Bank account | Name matches license | Personal account, last-minute change |
| Contract | Specs, penalties, Incoterms | Proforma invoice only |
Verification is not a single step. It's a series of small checks that add up to confidence. Do them before you send money, not after.