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How to verify a Chinese supplier before you pay a deposit
Updated 2026-10-18 · China
The question is not "is this supplier trustworthy" — nobody can answer that from a website. The question is: can this entity be identified, can it be held to a contract, and can its factory claim be checked? Those three are answerable with public records and a video call, and they catch most of the cases that go wrong. What follows is the order we do it in, and why each step exists.
In short
- Verify the legal entity, not the brand. A website name means nothing; the unified social credit code is what can be checked against the national registry.
- The bank account is the tell. A payment to a personal account, or to an account whose name does not match the company, is the single strongest warning sign.
- Factory or trader is a capability question, not a morality question. What matters is whether they control production, quality and documents for your order.
- Samples are evidence only if they are traceable. A sample that cannot be tied to a specific factory and model proves nothing about the bulk order.
1. Identify the legal entity
Every Chinese company has a unified social credit code (统一社会信用代码) and a registration record in the national enterprise credit information system, run by the market regulator. The record shows the legal name, registration date, registered capital, business scope, legal representative and any abnormal-operations listing.
- Ask for the business licence and check the company name and credit code against the registry, character by character.
- Check the business scope includes manufacturing, or at least the trading and export activity being claimed.
- Check for abnormal-operations entries (经营异常) and serious violations — these are public.
- Check how long the entity has existed. A company registered weeks before your order deserves a second look, not automatic rejection.
2. Match the payment account to the entity
This is the step that catches the most fraud, and it is free. The beneficiary name on the invoice must match the registered company name. A supplier who asks for payment to a personal account, a third-party account, or a Hong Kong account "for tax reasons" is asking you to give up your main legal protection.
Rule we apply: if the account name and the contract party differ, the order does not proceed until the difference is explained in writing and the contract is signed with the entity that receives the money.
3. Test the factory claim
A trading company can be a perfectly good partner — but it should not pretend to be a factory, and the accountability has to be clear. The fastest test is a live video walkthrough with specific requests that a warehouse cannot fake.
- Ask them to walk from the entrance sign to the production line in one continuous video, not a edited clip.
- Ask to see the specific machine or line for your product, running, with the model in production.
- Ask for the quality check point: where do they test, with what equipment, what record do they keep.
- Ask how many production lines and how many workers are on the line that would make your order.
- Cross-check the factory name against the company name. If they differ, ask for the relationship in writing.
4. Check the sample, not just the catalogue
- Require the sample to carry the factory name, model and production date, and record it.
- Compare the sample against the specification you sent: dimensions, materials, markings, packaging.
- Check certification claims against the certificate: holder, model list, issuing body, validity.
- Keep the approved sample sealed as the reference for pre-shipment inspection.
5. Put the obligations in the contract
Verification is not a substitute for contract terms. The purchase contract should name the entity, the specification, the inspection standard, the documents required and the consequence of non-conformity. What cannot be recovered later is the deposit paid to the wrong party.
- Contract party = the entity receiving the money = the entity on the invoice.
- Specification and approved sample referenced in the contract.
- Third-party inspection before shipment, with the standard named.
- Documents listed: invoice, packing list, certificate of origin, test reports, certificates where applicable.
Where buyers get caught
- The too-good price. A quote materially below the market usually means a different product, a different specification, or no intention to deliver.
- Personal account. The most common loss mechanism, and the easiest to avoid.
- Borrowed factory. A trader showing someone else's factory as its own; the relationship is undisclosed until something goes wrong.
- Certificate without scope. A certificate exists but does not cover the model being bought, or is held in another company's name.
- Sample switched. The sample was good; the bulk order is a different specification. Only inspection against a sealed sample catches this.
What we do, and what we do not do
We run this sequence for the factories we shortlist, and we tell you when a claim cannot be verified. We do not guarantee a supplier, and we do not ask you to pay a deposit before the entity and account have been checked.
- Registry check and business-licence verification for every shortlisted factory.
- Account-name check before any deposit instruction is issued.
- Live video walkthrough and production-line confirmation for the specific model.
- Third-party inspection against the approved sample before shipment.
Categories this applies to
Electric oven · Stand fan · Air fryer & multi-cooker · Induction cooker
Buyer questions
How do I check a Chinese company's business licence?
Through the national enterprise credit information system (gsxt.gov.cn) using the company name or the unified social credit code. The record shows registration details, business scope and any abnormal-operations entries. Compare it with the licence the supplier sends you.
Is a trading company less safe than a factory?
Not inherently. The risk is not the business model, it is unclear accountability: a trader that hides the factory makes quality problems harder to trace. What matters is who is accountable for the specification, the inspection and the documents.
Is it normal to pay to a personal account?
No. Paying a deposit into a personal account removes most of your legal recourse. Treat it as a stop signal and ask for a corporate account in the contracting company's name.
Do I need a factory visit?
A live video walkthrough with specific requests catches most false factory claims at low cost. A physical visit or a third-party factory audit is worth it when the order size or the certification requirement justifies it.
Does a certificate prove the product is compliant?
Only if it covers the exact model being bought and is held by the right party. Check the holder, the model list, the issuing body and the validity — a certificate for a similar model is not evidence for yours.
Primary sources
Checked 2026-10-18. Rules change; verify with the authority before you ship.
Ask about your product
Not sure whether this applies to what you are buying? Send the specification and we will tell you what has to be in whose name — request a quote, or email sales@xinhuichuan.com.