How to verify that a Chinese supplier is real

A professional website, a factory video and an attractive price do not prove that a Chinese company exists or can deliver. Before paying an advance, run seven checks. The first ones can be done from abroad; the last ones need someone in China.

1. The business licence and social credit code

Every Chinese company has a business licence with an 18-character unified social credit code. Ask for it and check in the National Enterprise Credit Information Publicity System that the Chinese name, code, address and legal representative match. The English name has no legal value: what counts is the Chinese name.

2. The authorised business scope

The licence states what the company may do. If it says “trading” rather than “manufacturing”, you are dealing with an intermediary, not a factory. That is not illegal, but it changes the price, quality control and who you can claim against.

3. Capital, shareholders and age

A newly formed company, with minimal capital or frequent changes of shareholders and legal representative, deserves extra care. Since 2024 capital must be paid up within five years, so subscribed versus paid-in capital tells you a lot.

4. Litigation and defaulters

Chinese courts publish judgments and a list of debtors who fail to comply with court rulings. A company with many breach-of-contract cases, or on that list, is a clear red flag.

5. The bank account

Payment should go to an account in the name of the same company that signs the contract. If you are asked to pay an individual, another company or a Hong Kong account “for tax reasons”, stop.

6. Licences, certificates and trademarks

Check that product certificates and export licences belong to that company and are valid, and that the brand you are offered is not registered by a third party.

7. The factory and the seal

A visit, or a third-party inspection in China, confirms that the factory exists and makes what it claims. When signing, the company’s official seal is what binds it: check that it is the registered one.

When to get help

If the amount matters, the supplier is new or something does not add up, a legal check costs far less than losing an advance. At UB China we do it through China Legal Check, with lawyers in Shanghai who review the official records in Chinese.