How to check a Chinese supplier before you pay

Why can't a check "verify" a supplier?

Verification in the strong sense would mean confirming future performance: that the goods will match the sample, that materials won't be substituted, that the order will ship on time. No document, video call or database can confirm that in advance. The checks below are due diligence: does the business exist on the record it claims, and does what you can observe match what you were told? They reduce specific risks, such as a shell company, a trader posing as a factory or an address that doesn't exist, without removing commercial risk.

How do you confirm a Chinese business exists?

China's State Administration for Market Regulation runs a free public registry, the National Enterprise Credit Information Publicity System. You search it by the company's Chinese legal name or its Unified Social Credit Code (USCC): an 18-character code issued to each business when it registers and shown on its business licence. Ask the supplier for both, and for a copy of the licence. The registry can show:

• Whether the business is registered and in normal operating status, or revoked or deregistered.
• Its registered business scope: what the entity is permitted to do.
• The legal representative's name, to check against whoever signs your contract.
• The registered address and registration date.

Check the USCC matches. The code on the licence image the supplier sends should match the registry entry for the same Chinese name, and that name should match the company on your contract and bank details. Any mismatch needs a clear explanation before you pay.

Practical limits. The registry is in Chinese, may ask you to pass a verification check before searching, and can be slow or unreachable from outside mainland China; it did not load when this guide was checked on 24 September 2026. You may need the exact Chinese name, or help from someone who reads Chinese. Commercial company-data services, such as Qichacha and Tianyancha, present registration information in their own sites and apps; they are named here as a signpost, not an endorsement.

What the registry can't tell you: it confirms legal existence and basic filings, not product quality, financial health, or whether the address is a working factory rather than an office.

How do you tell a factory from a trading company?

Ask directly. Trading isn't illegal or unusual, and a legitimate trading company will usually say so. Then check the registry's business scope, bearing in mind that many genuine factories list import and export alongside manufacturing, so "import-export" on its own proves little. The stronger signal is a scope with no manufacturing or production terms at all (in Chinese, words such as 生产 or 制造).

Neither is automatically better. A trading company can be a reasonable route to a factory that won't deal with a small buyer directly, but you should know which you're negotiating with, because it affects price transparency and who is accountable for production problems.

What can a video call tell you?

A live call, ideally one you request rather than one the supplier offers, can show whether the floor plausibly matches your product category and earlier photos, whether the person you're speaking to understands the production process rather than just sales terms, and whether there are signs of real production: machines running, staff present, materials in progress.

It can't confirm that the factory you see will make your order. Subcontracting is common and not a problem in itself, but it should be disclosed. A well-prepared bad actor can also stage a convincing tour. A call narrows the field; it doesn't replace a visit or an independent inspection where the order justifies one.

What do samples confirm?

That the supplier can make at least one unit to your specification, under conditions it controlled and knew were being judged. A sample doesn't show consistency across a production run. That's what a during-production or pre-shipment inspection addresses: an independent check of goods, carried out by a third-party inspection company, while they're being made or before they ship.

What do platform badges, reviews and payment protection tell you?

Badges. Marketplace verification programmes typically confirm things like licence validity and factory address, sometimes with a third-party audit, but scope and dates vary. Read the platform's own definition; a badge is a data point on the platform's terms, not an endorsement of quality.

Reviews. Treat them as unverified claims, weighted by how many there are and how specific they are. Many reviews describing a particular product line or a repeat relationship say more than a few generic five-star ratings. Their authenticity can't be checked from outside the platform.

Payment protection. Some marketplaces run payment-protection schemes, such as Alibaba.com's Trade Assurance, which Alibaba describes as covering orders paid through Alibaba.com. Read the scheme's terms before relying on it; paying a supplier directly, outside the platform, puts the payment outside the scheme.

How much checking is proportionate?

Proportionate to what you stand to lose. For a modest first order, confirming the business exists, a video call and clear written payment terms may be enough. As order value grows, or with custom tooling or a supplier you can't get comfortable with remotely, a paid independent factory audit or pre-shipment inspection becomes easier to justify. These are arranged with third-party inspection companies; a report from a genuinely independent inspector is worth more because neither the buyer nor an agent produced it. There's no fixed threshold, so make the decision deliberately.

What payment warning signs should you watch for?

None of these proves fraud on its own, but each is worth resolving before you pay:

• Pressure to pay by an unusual method, outside the agreed terms, to a personal account, or with urgency that doesn't match the request.
• An account name that doesn't match the company on your contract and the registry. Check it every time you pay, not just the first time.
• A late change to bank details. UK police's Report Fraud service describes this as mandate fraud, also called payment diversion fraud: criminals, often posing as a known supplier by email, send new bank details so that payments go to an account they control. Its advice is to confirm any request to pay a new account with the supplier directly, using official contact details you already hold, and to consider a small test payment before sending a large sum.
• Refusal to put agreed terms in writing, or a written contract that differs from what was agreed.

Does a longer trading history make a supplier safer?

It's a positive signal, not a guarantee. Several years of registration with a consistent business scope shows the business has lasted long enough to build a record. It doesn't show that the current owners built it, that the business hasn't changed what it does, or that your order will go smoothly. Use it as one input alongside the other checks.

What about the contract's language and governing law?

Which language the contract is in, which version governs if translations differ, and which country's law applies all affect how you could enforce it. These are legal questions: get independent legal advice on them before signing for an order that matters to you, rather than relying on a template found online.

What should you ask for before paying a deposit?

1. The company's full Chinese legal name, its USCC and a copy of its business licence.
2. A recent photo or video of the production floor for your product, ideally live.
3. Whether they make your product themselves or subcontract any part of it.
4. Examples of similar orders they've completed, bearing in mind they'll offer their best.
5. Payment terms in writing, including what happens if the goods don't match the agreed sample or specification.

A supplier who becomes evasive, defensive or pushes you to skip these steps and pay quickly is telling you something, even if no single check has "failed".