Key points
- Search the supplier's 18-character Unified Social Credit Code on the official GSXT register; it is free and public.
- The company name on the licence, contract, invoice and bank account must be identical.
- Business scope and site visits tell a real factory from a trading company.
- A good sample proves the supplier can make the product once; only a pre-shipment inspection proves your order.
- Pay a deposit, release the balance only after a passed inspection, and confirm any bank change by phone.
The verification sequence at a glance
- Get the licence and USCCAsk for a clear photo of the business licence (营业执照). It shows the 18-character Unified Social Credit Code, the registered name and the legal representative.
- Search the official registerEnter the code or the Chinese company name on the National Enterprise Credit Information Publicity System (gsxt.gov.cn) and compare every field with what you were told.
- Match the paperworkThe name on the quotation, proforma invoice, sales contract and beneficiary bank account must be the same legal entity as the licence.
- Confirm who exportsAsk which company will appear as exporter on the Chinese customs declaration and whether it is registered with China Customs as a consignor.
- Audit the factoryVisit or send an auditor to see production lines, capacity, staff, quality records and export history at the registered address.
- Approve a sampleTest a production-standard sample against your specification, then sign and keep a reference sample.
- Inspect before the balanceBook a pre-shipment inspection under AQL sampling when at least 80% of the order is packed, and pay the balance only after it passes.
Business licence checks on the official register
Every company legally registered in mainland China has a Unified Social Credit Code, an 18-character number printed on its business licence. China's market regulator publishes registration data free of charge on the National Enterprise Credit Information Publicity System at gsxt.gov.cn. The interface is in Chinese, so search with the code rather than an English trading name: many suppliers use an English brand that has no legal standing. If a supplier refuses to share its licence, or the code returns no result, stop there.
| Field on the register | What to check | Warning sign |
|---|---|---|
| Company name (Chinese) | Exact match with contract, invoice and bank account | Invoice or bank account in a different company's name |
| Registration status | Active (存续 or 在业) | Revoked (吊销) or deregistered (注销) |
| Date of establishment | Consistent with the experience claimed | Claims 15 years of exports, registered last year |
| Business scope (经营范围) | Includes production or manufacturing (生产, 制造) of your product type | Only sales, wholesale or trading (销售, 批发, 贸易) |
| Registered address | Same city and site as the factory you audit | Address in an office tower, factory in another province |
| Legal representative and shareholders | A real person or parent company you can identify | Changed recently, just before your large order |
| Abnormal operations and dishonesty lists | No entries | Listed for abnormal operations (经营异常) or serious violations |
Factory or trading company?
Trading companies are not bad suppliers, and many Gulf importers buy mixed ranges through good ones. The problem is a trader posing as a factory: you lose sight of who makes the goods, quality can change when the workshop changes, and the price hides a margin.
- Business scope includes manufacturing of your product
- Registered address matches the production site
- Can show machines, moulds, raw material stock and line workers
- Usually better on price and technical changes for one product family
- Minimum order quantities are often higher
- Business scope lists sales, wholesale or import and export
- Office address, often in Guangzhou, Yiwu or Shenzhen
- Can combine many product lines in one order
- Ask for the name and address of the actual factory and include it in the contract
- Inspect at the factory, not at the trader's showroom
- Small shops in Yiwu or Guangzhou markets, often without VAT invoices
- Usually cannot export in its own name
- Goods can be declared under the market procurement mode (1039) through a registered market operator
- Count and check goods on arrival at the consolidation warehouse
- Suits mixed general merchandise, not technical products
The factory audit: what to verify on site
A factory audit happens before the order and checks the supplier, not a batch of goods. Visit yourself or send an auditor who reports with photos, to confirm the registered company runs the site and can make your quantity to standard and on time.
Factory audit checklist
0/9Samples: what they prove and what they do not
- A sample proves the supplier can make the product once; it does not prove mass production will match.
- Ask for a production-standard sample from the line, not a hand-finished showroom piece.
- Test against a written specification: materials, dimensions, colour, function, packing and labels.
- If you need destination conformity (for example UAE ECAS or Saudi SABER), check early that the product can meet it.
- Sign, date and keep one approved reference sample; the supplier keeps a twin. Inspectors compare the order with it.
Red flags that should stop the order
Tap a card to flip it
Payment protection
Verification reduces risk; payment terms limit what you can lose. With a new supplier, tie money to evidence: a deposit to start production, and the balance only after a passed inspection and a copy of the bill of lading. Keep the proforma invoice, contract and payment proof.
| Method | How you are protected | Watch out for |
|---|---|---|
| T/T deposit + balance against B/L copy | Supplier controls goods until paid, you pay the balance after shipment is proven | Deposit is at risk; add a pre-shipment inspection before paying the balance |
| Letter of credit (UCP 600) | Bank pays only against documents that comply with the credit | Banks check documents, not goods; require an inspection certificate from a named body |
| Documentary collection D/P (URC 522) | Your bank releases documents only when you pay | Needs an original to-order B/L; you still pay before seeing the goods |
| Platform escrow (for example Alibaba Trade Assurance) | Platform holds or tracks payment under its dispute rules | Claim deadlines and platform rules apply |
| 100% T/T in advance | None beyond the supplier's good faith | Use only for samples or very small orders |
Test your judgement
Supplier verification quiz
Frequently asked questions
How can I check if a Chinese company is real?
Ask for its business licence and search the 18-character Unified Social Credit Code on gsxt.gov.cn, the official national enterprise register. Check the status is active and that the name, address and scope match what the supplier told you.
Is the Chinese business register free to use?
Yes. The National Enterprise Credit Information Publicity System is a public government service. It is in Chinese, so search by the credit code or the Chinese company name rather than an English brand.
How do I know if a supplier is a factory or a trading company?
Look at the business scope on the register: factories list production or manufacturing. Then confirm with a site visit or audit at the registered address and ask to see the machines and workers making your product.
How much deposit is normal with Chinese suppliers?
A 30% deposit with a 70% balance is common on China to Gulf orders. Pay the balance after a passed pre-shipment inspection and against a copy of the bill of lading.
Can Golden Way check a supplier for me?
Yes. Our Guangzhou team offers supplier checks and invoice and packing-list checks, and can arrange a factory check, a pre-shipment inspection and container loading supervision. Our team replies within one working day.
Sources
General information checked on the date shown. Rules and rates change: our team confirms the details for your shipment.