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Trade Guide · 6 min

How to Verify Chinese Suppliers: A Buyer's Due Diligence Checklist

Don't get scammed. Learn how to verify Chinese manufacturers, check business licenses, request factory audits, and protect yourself with secure payment methods.

How to Verify Chinese Suppliers: A Buyer's Due Diligence Checklist

Step 1: Check Business License

Supplier verification process

Every legitimate Chinese company has a Unified Social Credit Code (USCC). You can verify it on the National Enterprise Credit Information Publicity System (gsxt.gov.cn). Look for: company name matches, business scope includes your product category, and the license is still valid.

Step 2: Request Factory Photos & Video

A genuine manufacturer will gladly share photos and live video of their factory floor, warehouse, and quality control area. Be wary of suppliers who only have office photos or refuse to show production facilities.

Step 3: Third-Party Inspection

Services like SGS, Bureau Veritas, or local inspection companies can conduct factory audits on your behalf. Cost: $300-800 per audit. This is the most reliable way to verify production capacity and quality control systems.

Step 4: Secure Payment Methods

  • Alibaba Trade Assurance: Protects orders up to $100,000 with escrow payment.
  • Letter of Credit (L/C): Bank-guaranteed payment for orders over $10,000.
  • 30% T/T + 70% against B/L copy: Standard practice for established relationships.
  • PayPal/Western Union: Only for samples, never for bulk orders.
#Due Diligence #Supplier Verification #Business License #Trade Assurance

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