7 checks before you pay a Chinese supplier a deposit
Most problems with a Chinese supplier show up in the paperwork, in Chinese, before the deposit. These seven checks take a few hours and can save a failed order.
1. Match the legal entity
The company name on the business licence, on the contract and on the bank account you pay should be the same. If you are asked to pay a different company or a personal account, ask why and get the answer in writing.
2. Check that the company is active
Look up the credit code in the public record (国家企业信用信息公示系统). The status should be active, such as 存续 or 在业, not revoked (吊销) or cancelled (注销). Check the operating term has not expired.
3. Check the scope covers your product
The registered scope should include your product category, and production wording if you expect a manufacturer. See the guide on reading a business licence.
4. Know whether you are buying from a factory or a trader
Read the scope, legal form, address, headcount and store pages together. A trader can be fine, but you should know, so you can plan lead times and customisation. See the factory-or-trader guide.
5. Compare their claims with the records
Claims about staff, years in business, capacity and export experience should line up with the registration entry and annual reports. Where they do not, note the gap and ask the supplier to close it. A gap is a question, not a verdict.
6. Verify certificates, do not just collect them
Confirm numbers with the issuer or database, check the name and product match, and check the dates. A scan alone is only a claim. See the certificates guide.
7. Put the terms in writing
Specifications, sample approval, quantity, price basis, delivery date, packaging and what happens if the goods do not match should all be in the contract. Where possible, use a payment method that gives you some protection, and do not pay in full before you have seen what you are getting.
Turn the results into a list
| Check | Result | If it is not Verified |
|---|---|---|
| Entity name matches | Verified / Unknown | Ask which company will invoice and receive payment. |
| Status is active | Verified / Unknown | Do not pay until it is confirmed. |
| Scope covers product | Verified / Unknown | Ask which entity is licensed to make or sell it. |
| Factory or trader | Likely factory / trader | Ask which factory makes it. |
| Claims match records | Verified / Supplier-claimed | Ask for proof of the claim. |
| Certificates | Verified / Supplier-claimed | Ask for numbers and issuer details. |
| Written terms | Done / Open | Finish before the deposit. |
No check removes all risk. A desk review shows what can be confirmed from records and what cannot. It does not visit the factory, inspect the goods or guarantee delivery.