How to verify a Chinese supplier before you pay

1. Ask for and check the business licence

Every Chinese company holds a business licence (营业执照) showing an 18-character unified social credit code (统一社会信用代码). Ask for a legible copy.

Then check the details on the National Enterprise Credit Information Publicity System (gsxt.gov.cn): company name, date of incorporation, capital, legal representative, status and business scope. The company invoicing you must match the licence exactly.

2. Factory or trading company?

Many sellers present themselves as manufacturers when they are trading companies. That is not necessarily a problem, but you need to know: pricing, lead times, quality control and recourse are not the same.

The business scope on the licence, the address (industrial zone or city office) and a live video tour of the production line are good indicators.

3. Check the payment bank account

• The account must be in the exact name of the company on the licence and the invoice.
• Be wary of requests to pay into a personal account or a different company's account.
• A change of bank details announced by email is a classic red flag: always confirm it through another channel.

4. Check real capacity to deliver

Ask for references, dated photos and videos of production, product certificates where your goods require them, and order samples. For a large order, an on-site visit or audit remains the only way to see the factory's real capacity.

5. Secure the payment terms

Avoid paying 100% upfront. A common practice is to pay a deposit, then the balance against proof of shipment or after the goods have been inspected. For large amounts, a documentary letter of credit offers a more protective framework.

Tie every payment to concrete evidence: inspection report, shipping documents, bill of lading.

Frequently asked questions