To verify a Chinese supplier, check that the legal company exists, that it actually makes or can source your product, and that the bank account you pay into belongs to that company. These three checks, plus a sample and a modest first order, stop the large majority of scams importers run into.
Key takeaways
- Every legitimate Chinese company has a business licence with an 18-character Unified Social Credit Code that you can look up online.
- The company name on the licence, the contract, the invoice and the bank account should be identical.
- A live video call of the production floor costs nothing and filters out many fake factories.
- Third-party factory audits typically cost around 200-400 USD per man-day and are worth it before large or custom orders.
- Bank detail change emails are one of the most damaging frauds and should always be confirmed by phone or video.
What are the most common supplier scams?
Knowing the patterns makes them easier to spot.
| Scam type | How it works | How to protect yourself |
|---|
| Fake supplier | A non-existent company takes a deposit and disappears | Licence check, video call, pay through a protected channel |
| Bank detail change | A hacked or spoofed email asks you to pay a new account | Confirm by phone, never change accounts on email alone |
| Bait and switch | Great samples, poor mass production | Pre-shipment inspection, golden sample, detailed specs |
| Trading company posing as factory | Middleman hides markups and lacks control | Licence scope, factory tour, audit |
| Quantity shortfall | Fewer units shipped than paid for | Inspection with carton count, packing list check |
| Certification fraud | Fake or borrowed CE, FCC or test reports | Verify report numbers with the issuing lab |
| Domain lookalike | Website or email nearly identical to a real supplier | Check spelling, domain age, contact via known channels |
Step 1: Check the business licence
Ask every shortlisted supplier for a scan of their business licence (营业执照). It contains:
- The Unified Social Credit Code, 18 characters
- Registered company name in Chinese
- Legal representative
- Registered capital and date of establishment
- Business scope (the activities the company is allowed to carry out)
- Registered address
Look up the code on the National Enterprise Credit Information Publicity System (gsxt.gov.cn) or on commercial databases such as Qichacha or Tianyancha. These sites are in Chinese, but browser translation is usually enough. Check that:
- The company is active, not cancelled or revoked.
- The business scope includes manufacturing (生产) if the supplier claims to be a factory.
- The establishment date is consistent with the experience claimed.
- There are no major lawsuits, administrative penalties or "abnormal operation" listings.
A company founded eight months ago that claims fifteen years of export experience deserves more questions.
Step 2: Confirm the factory exists
Online evidence is easy to fake, so ask for proof in real time.
- Live video call: ask the salesperson to walk to the production line, show machines running and point the camera at your type of product. Ask them to show the company name at the entrance.
- Address cross-check: compare the factory address with satellite images on map services. A "factory" located in a residential tower is a warning sign.
- Production capacity: ask about number of workers, machines and lines. Compare with the volumes they promise.
- Export history: ask which markets they ship to and request references or copies of past test reports with client names redacted.
If you are travelling, a visit during a trade fair trip is ideal. Many importers combine the Canton Fair with a day of factory visits in Guangdong.
Step 3: Verify certificates and test reports
For the EU market, you may need CE marking, REACH, RoHS, EN 71 for toys, or food contact compliance. Suppliers often send certificates that:
- Belong to another company
- Cover a different product
- Have expired
- Were issued by a non-accredited body
Check the report number with the issuing laboratory (SGS, Intertek, TÜV, Bureau Veritas and others offer online verification). Remember that for CE marking, you as the importer have legal responsibilities too. See our guide to CE marking and EU compliance.
Step 4: Use a third-party audit for larger orders
For custom products, large orders or long-term partnerships, a professional audit gives an independent view.
| Audit type | What it checks | Typical cost |
|---|
| Supplier verification (desk check) | Licence, legal status, basic data | Around 100-300 USD |
| Factory audit (on-site) | Facilities, capacity, quality system, staff | Typically 200-400 USD per man-day |
| Social compliance audit | Labour conditions, safety, working hours | Often higher, several man-days |
| Technical or process audit | Specific processes, equipment, R&D | Depends on scope |
Prices vary by provider, city and scope. Large firms such as QIMA, V-Trust, SGS, Bureau Veritas and Intertek operate across China, alongside many smaller local agencies.
Step 5: Secure the payment
Payment is where scams turn into losses. Follow these rules:
- Pay a company account only, in the exact name on the contract and licence.
- Avoid 100% upfront payments for production orders. A common structure is 30% deposit and 70% before shipment, after inspection.
- Confirm any bank change by phone or video with a contact you already know. Treat urgent requests with suspicion.
- Use protected channels when available, such as Alibaba Trade Assurance for orders placed on Alibaba.com.
- Match the beneficiary country: a supplier in Shenzhen asking you to pay an account in another country needs a convincing explanation.
For a deeper look at payment methods, read how to pay Chinese suppliers safely.
Step 6: Test with samples and a trial order
Even a real, honest company can be the wrong supplier for you. Ordering samples lets you check quality, packaging and responsiveness. Keep one approved sample as a "golden sample" and reference it in your purchase contract. Then start with a smaller first order and a pre-shipment inspection before scaling up. Our guides on ordering samples and quality inspection with AQL cover both steps.
What should your purchase contract include?
Verification reduces the risk of dealing with the wrong company, while a clear contract reduces the risk of a dispute with the right one. A short, bilingual purchase agreement (English and Chinese) is ideal. It should cover:
- Exact product specifications, referencing the approved golden sample
- Quantities, unit prices and the Incoterm (EXW, FOB or DDP)
- Payment schedule and the bank account in the company's name
- Production lead time and penalties for late delivery
- Quality standard and inspection terms, including AQL levels
- Packaging and labelling requirements for your market
- Ownership of moulds, designs and artwork
- A non-disclosure and non-use clause if your product is custom
Chinese courts enforce contracts written in Chinese more easily, so for larger orders consider having a lawyer review a Chinese version.
Red flag checklist
Pause and investigate if you see any of the following:
- Price 30% or more below other serious quotes
- No business licence, or reluctance to share it
- Refusal to do a live video call
- Bank account in a personal name or a different company name
- Email domains from free providers for a supposedly large company
- Pressure to decide quickly or pay before a contract is signed
- Certificates without verifiable report numbers
- Inconsistent answers about factory location or capacity
One red flag is not always fatal, but two or three together usually are.
How Cina helps
Cina's product sourcing and supplier verification guide, available in the Cina resources, walks through each check above with screenshots of the Chinese registries and a ready-to-use verification checklist. The supplier directory gives you a starting list of more than 41,000 suppliers to cross-check against what you find on marketplaces. For on-site checks, you can also find local partners through Cina's directories of sourcing agents.
Conclusion
Verifying a Chinese supplier takes a few hours of desk research and a few hundred euros at most, which is small compared with the cost of a lost deposit or a failed shipment. Check the licence, see the factory, secure the payment and test before you scale. Done consistently, these steps make sourcing from China far safer.
