Match the supplier to its registered legal identity
Start a China supplier verification file with the supplier’s full Chinese legal name, its Unified Social Credit Code, a copy of its business licence and the name of the person who can confirm the order. Record the factory address separately if the business trades from one location and manufactures at another. Keep the quotation version and the purchase order number in the same file so the checks can be tied to a specific order.
Use the exact Chinese name or code to look up the company in China’s National Enterprise Credit Information Publicity System (GSXT). Compare the name, code, registered address and displayed operating status with the licence and the quotation. Save the result and search date. Ask for a written explanation if the names or addresses differ. Shanghai’s government explains how the code is assigned and what registration information the system makes public. See the Shanghai market access FAQ.
If a search fails, recheck the spelling and code before drawing a conclusion. The mainland registry is for mainland entities. A Hong Kong entity or an overseas invoicing company needs verification through its own registry, plus a clear explanation of its role. If you cannot establish who will sign the contract and take responsibility for the order, keep the order on hold.
A register entry establishes the identity and public registration information of a business. Production capacity, product conformity and the authority of an individual contact need their own checks. The Canadian Trade Commissioner Service guide to due diligence in China distinguishes company registration and authority from other risk checks.
Check the factory, sample and inspection scope
Ask where your exact model will be made, which operations will happen at that site and which will be subcontracted. A trading company can be suitable if it identifies the production arrangement, controls changes and accepts clear responsibility for quality and delivery. If the order is sensitive to capacity, tolerances or subcontracting, discuss factory audit coordination around the named site and specific process. A facility visit or audit addresses the agreed site questions. Sample approval and lot inspection each address separate questions.
Approve a sample against the same specification revision that appears on the purchase order. Record its sample reference, material, dimensions, finish, packaging and labels as relevant to the product. Give the supplier and inspector the same accepted reference. If the supplier changes a component or packaging material during production, record the change, evaluate it and issue a revised approval before relying on the previous sample.
For a certificate or test report, check the applicant, issuing body, report number, model and scope. Confirm that the product version, applicable market and intended use match your order. Where authenticity matters, use an independently obtained issuer contact or its verification service. Ask a qualified reviewer when the product or destination has specific conformity requirements.
Define a pre-shipment inspection before the shipment deadline. Identify the lot, how cartons or units will be selected, which defects block release and who can approve rework or a reinspection. Ask for dated evidence linked to the actual lot. A sample approved at the start of the order does not record what was packed at the end.
Confirm the contracting party and payee before payment
Compare the quotation issuer, contracting company, invoice issuer and proposed bank beneficiary side by side in the purchase file. An explained and authorised difference can have a legitimate business reason. If an affiliate or other entity will receive payment, request documentation linking it to the order, independently verify its identity and approval, and have your finance team approve the arrangement before releasing funds. Compare the confirmed beneficiary details with the pro forma invoice and the payment record.
Put a hold on any unexpected bank change. Confirm the request by calling a previously verified number or using another established channel, and record who authorised it. Use a second internal approval if your process requires one. The FBI’s Internet Crime Complaint Center recommends independent confirmation of payment changes through a known contact. See its business email compromise advisory.
Define which evidence must be available at each agreed payment milestone. A deposit decision can rely on verified identity and an approved order. A later milestone might require a completed inspection, an agreed correction or another contract-specific document. Record any exception with the approval and date instead of leaving it in a chat thread.
Check the packed order and authorise collection
When the supplier reports that the goods are ready, reconcile the final packing list with the purchase order and inspection lot. Confirm actual carton count, marks, packed dimensions, gross weight, collection address, contact and pickup window. If stock is split between a factory and a warehouse, identify which goods are available at each address and ask for separate handover counts. Provide the forwarder only the confirmed shipment scope.
Keep product release, payment approval and pickup instructions as separate decisions. A passed inspection can support product release. Finance still verifies any payment conditions, and the logistics contact still needs the current pickup address and carton details. Record who is authorised to release each part of the order. If counts, labels, condition or pickup location differ, reconcile them with the buyer before loading. If early collection or a partial release is agreed, state exactly which cartons may move and which stay on hold.
For buyers coordinating several suppliers, a China product sourcing agent can help organise supplier comparisons, sample collection and order follow-up within an agreed scope. Name the person who approves the supplier, the sample and the final release. For help with the wider buying workflow, see the sourcing and Canton Fair guides.
A worked example and buyer checklist
Suppose you order 600 units from a trading company in 30 cartons. Its legal name matches the quotation, and a different factory will make and pack the order. You can document the factory address, who is responsible for quality, the approved sample version and the name of the party authorised to receive payment. During inspection, the report lists 29 packed cartons. A supplier email also asks you to pay a new beneficiary before pickup. This is a hypothetical order.
Keep the affected payment and pickup on hold while the two issues are resolved independently. Verify the new instruction through your existing finance contact. Ask the supplier to account for the missing carton and reconcile the final packing list with the actual inspection lot. If you agree to collect 29 cartons, approve the short shipment in writing, record the balance that will follow and share the revised count with the forwarder before collection.
- Before payment. Confirm the company record, contracting party, verified beneficiary, signed order and approved payment instructions.
- Before production or inspection. Record the site, approved sample revision, product specification, change process and inspection scope.
- Before collection. Confirm the release decision, final packing list, actual marks and counts, pickup contact and any excluded goods.
Common questions about verifying Chinese suppliers
Does an official registration entry guarantee a safe order?
Registration shows public information about the entity. Check who is authorised to sign, where the product will be made, what was inspected and who is entitled to receive payment before approving the relevant stage.
Is a trading company automatically unsuitable?
A trading company can be a good fit if its production partners, responsibilities, quality controls and handover arrangements are clear. Check the actual factory and ensure your contract identifies who is responsible for resolving any defects.
Can I collect goods before the inspection is complete?
Use the release conditions you agreed for the order. If inspection is a condition for collection, wait for the result and the buyer’s written release. When a partial release is permitted, give the forwarder the approved lot or carton references and record the remaining goods separately.
What should I do if the quotation and bank beneficiary names differ?
Pause the transfer and request a documented explanation. Verify the beneficiary and any authorisation independently, and have the authorised finance contact approve the arrangement before payment.