How to verify a Chinese factory

Ask for the business licence

Every company in China has a business licence (营业执照) with an 18-character Unified Social Credit Code (统一社会信用代码). Ask for a clear copy. The company name on it must match the name on the quotation, the contract and the bank account.

Check it in the official registry

Search the company name or credit code in the National Enterprise Credit Information Publicity System (国家企业信用信息公示系统), the official public registry. Check that the company is active, when it was registered, its registered address, and whether it has any recorded irregularities.

Read the business scope

The licence lists the business scope (经营范围). A manufacturer's scope normally includes production (生产 or 制造) of the relevant products. A scope limited to sales or trade usually means a trading company. Trading companies can be useful, but you should know who actually makes your goods.

See the factory

Ask for a live video call that walks through the production lines, the warehouse and the office, rather than relying on photos, which can be copied. If the order is large, a visit or a third-party factory audit is worth the cost.

• Is the equipment suited to your product?
• Are similar products in production or in stock?
• Does the address on the licence match the place you are shown?

Check certificates with the issuer

Quality certificates and test reports (for example ISO 9001, or product test reports) can be checked with the certification body or laboratory that issued them, using the certificate number. Make sure the certificate covers the company and the product you are buying.

Watch the bank details

The receiving bank account should be a company account in the same name as the company on the contract. A request to pay a personal account, or a different company, is a warning sign that needs a clear written explanation before you pay.

Start small

A paid sample order, then a first order of a reasonable size, shows how the supplier communicates, keeps deadlines and handles problems before you commit larger amounts.