Supplier due-diligence guide

    How to Verify a Chinese Supplier

    Before you wire a deposit, run these nine checks. A step-by-step way to confirm a China supplier is legit — and the red flags that mean walk away.

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    Quick Answer

    To verify a Chinese supplier, check its business license and 18-digit registration number on China's official GSXT registry, confirm it holds a valid export license, and establish whether it's the real factory or a trading company. Then test samples, run a video call or third-party factory audit, check references, confirm the bank account exactly matches the company name, and use an independent AQL 2.5 pre-shipment inspection with a 30/70 payment split before releasing the balance.

    The checklist

    The 9-step supplier verification checklist

    Work through these in order before you commit to any bulk purchase.

    1. 1

      Verify the business license and registration number

      Ask for the supplier's Chinese business license and check the 18-digit Unified Social Credit Code on China's national enterprise credit system (GSXT). Confirm the legal name, registered capital, and that the license is active — not expired or revoked.

    2. 2

      Confirm the export license

      Not every registered company can legally export. Confirm the supplier holds a valid import/export licence (or works through a licensed export agent). A factory that can't export directly must invoice through a trading entity — know which one before you pay.

    3. 3

      Distinguish a factory from a trading company

      Ask targeted production questions: number of lines, monthly capacity, and who owns the machines. A trading company sells a wide range of unrelated products and resists naming or showing the real factory. Knowing which you're dealing with tells you where the true price and quality control sit.

    4. 4

      Request and test samples

      Order samples against a written spec sheet before any bulk order. Test them for function, dimensions, materials, and compliance. Keep a signed golden sample so the pre-shipment inspection has a fixed reference to check production against.

    5. 5

      Video-call, visit, or commission a factory audit

      Do a live video walk-through of the production floor, or visit in person. When you can't travel, commission a third-party factory audit that confirms the address, equipment, and capacity actually exist and match what was claimed.

    6. 6

      Check references and track record

      Ask for references from existing overseas buyers and follow up. Look at how long the company has traded, its export history, and any certifications relevant to your product (CE, RoHS, FDA, etc.), verifying certificate numbers with the issuing body.

    7. 7

      Verify the bank account matches the company name

      The receiving bank account must be in the exact registered company name and in China — never a personal account, a Hong Kong shell, or a name that doesn't match the license. A mismatch is one of the strongest fraud signals there is.

    8. 8

      Use a pre-shipment inspection at AQL 2.5

      Before the balance is paid and goods ship, run an independent pre-shipment inspection at AQL 2.5 against your golden sample and spec. This catches defects, wrong quantities, and substituted materials while you still have leverage to fix them.

    9. 9

      Structure payment 30/70 with leverage

      Split payment so a deposit (commonly 30%) starts production and the balance (70%) is released only after a passed pre-shipment inspection. Keeping the larger payment tied to verified, inspected goods is your strongest protection against a supplier who under-delivers.

    Warning signs

    Red flags that mean walk away

    If you see these, stop and re-verify before any money moves.

    • Payment demanded to a personal account or a name that doesn't match the business license
    • Refusal to allow a video call, a visit, or a third-party factory audit
    • Prices far below every other quote — often a sign of substituted materials or a scam
    • No verifiable business license or an 18-digit code that doesn't resolve on GSXT
    • A brand-new company with no export history pushing for a large upfront payment
    • Vague answers on capacity, or a catalogue of unrelated products (a trading front)
    • Certificates supplied as images only, with numbers that can't be verified with the issuer
    • Pressure to skip inspection or pay the balance before goods are checked
    Related: China quality control inspection · China sourcing agent · Sourcing agent vs trading company

    How to verify a Chinese supplier — FAQ

    Verify the supplier's business license and 18-digit registration number on China's official enterprise credit system (GSXT), confirm it holds a valid export license, and establish whether it's the real factory or a trading company. Then order and test samples, do a live video call or third-party factory audit, check buyer references, confirm the bank account exactly matches the registered company name, and use an independent AQL 2.5 pre-shipment inspection before releasing the balance payment.

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