How to Verify a Chinese Supplier Before You Pay

A practical checklist to separate real factories from traders and scammers, using free checks you can run in an afternoon.

Most bad experiences with Chinese suppliers come from skipping checks that take an hour. None of this requires flying to China.

1. Check the business licence

Every legitimate company has a business licence with a Unified Social Credit Code — 18 characters. Ask for a photo of it, then look the company up on China's National Enterprise Credit Information Publicity System or a commercial database such as Qichacha or Tianyancha. Confirm:

The company name matches the one on your invoice and bank details.
The registered business scope includes manufacturing (生产) if they claim to be a factory.
The company is active, and how long it has existed.
Registered capital and any recorded legal disputes or penalties.

2. Factory or trading company?

Traders aren't bad — many are efficient and speak better English — but you should know which one you're dealing with. Clues that you're talking to a factory: the licence lists manufacturing, they can video call from the production floor right now, and their product range is narrow and deep rather than "everything".

3. Match the bank account

The account receiving your money should be in the same company name as the licence. A personal account or a different company in Hong Kong is a red flag unless it is explained in writing and you've verified the link.

4. Live video call

Ask them to walk you through the production line and show your product being made, or stock on a shelf. Pre-recorded videos prove little.

5. Samples and inspection

Pay for a sample. Before shipping your main order, have a pre-shipment inspection — through a third-party inspection firm or your agent — against a written spec: dimensions, materials, colour, packaging, defects allowed. See how to inspect quality before you pay the balance.

6. Pay in stages

A standard structure is 30% deposit and 70% after inspection, before shipping. On Alibaba.com, Trade Assurance adds a layer of protection when you pay through the platform.

Red flags

Prices far below every competitor.
Pressure to pay quickly or to a new account "because of an audit".
Refusal to do a live video call.
A company that's a few months old claiming ten years of experience.

Want a second pair of eyes on your suppliers?
We search 1688 and Alibaba in Chinese, compare 3–5 suppliers, check their business licences and store records, and estimate your landed cost — all in one clear report.
See how it works