Verifying a Chinese factory: checklist and red flags
Is your Chinese supplier really a factory? What to check in the company record, production footage, documents and payment terms.
Not every Chinese “factory” you meet is a manufacturer. Some are trading companies, some are agents, and a few do not exist at all. Applying the steps below before you place an order or pay a deposit removes most of the risk.
Manufacturer or trading company?
Working with a trading company is not wrong, but you must know who controls price and quality. To tell the difference, look at:
- Does the business licence list production or trading as the activity?
- Is the factory address the same as the correspondence address?
- Does it have its own product range, or does it say “we can make anything”?
- Can it show the production line on a live video call?
Verify the company registration
- Ask for the business licence (营业执照) and the 18-digit Unified Social Credit Code.
- Look the code up in China’s official National Enterprise Credit Information Publicity System (gsxt.gov.cn): do the name, founding date and business scope match the licence?
- Check the founding year and capital; very new firms with very large claims need extra care.
- If it exports, ask about its foreign trade registration and customs details.
See the production capacity
- Live video call: ask them to walk the line for you instead of sending stock photos.
- Dated, personal footage: a short video with a note showing your name or the date weeds out copied photos.
- Machines and shifts: do monthly capacity, machine count and headcount fit your order quantity?
- Site visit or third-party audit: for larger orders a local inspection firm or representative can check in person.
Ask for documents and a quality system
- Management system certificates such as ISO 9001 (verify the number and the issuing body)
- Product-specific documents: CE and test reports for toys, conformity reports for food-contact items, and so on
- Customer references and experience with similar products
- Sample process: cost, lead time, and whether samples come from the same line as mass production
Be careful with payment terms
- Pay into a company account in the company’s name; do not send a deposit to a personal account.
- Confirm the account holder name matches the licence name exactly.
- Stage deposits (for example on order confirmation, after production and before shipping). Do not pay everything upfront.
- Verify any “our bank details changed” email by phone.
Red flags
| What you see | Why it matters |
|---|---|
| Price far below competitors | Cheaper materials, hidden costs or a fake quote |
| Asks for payment to a personal account | Weak company record and legal traceability |
| Avoids video calls or visits | May have no line to show |
| “Can make every category” | Likely an agent hiding the real factory |
| Blurry, old or other-company documents | Documents may be copied |
How Ahenza Global helps
We search for suppliers, verify company information and prepare a side-by-side comparison in our supplier sourcing and verification service. After the order, see quality control and samples, and private label manufacturing if you want your own brand. For regulated products, read our toy import guide.
Frequently asked questions
Is working with a trading company wrong?
No. Trading companies can combine several factories and make things easier. What matters is knowing up front who is responsible for price, quality and documents.
Do I have to visit the factory?
Not for small orders: a live video call, documents and a sample often tell you enough. As orders grow, an on-site or third-party inspection makes more sense.
Why isn’t checking the business licence enough?
A licence shows the company exists; it does not show that it manufactures or can make your product. Registry checks, production footage and a sample should be assessed together.
Written by: the Ahenza Global team, an Antalya-based import and export company · Published: 1 October 2026
Related service: Supplier sourcing and verification · Company registry lookup: China National Enterprise Credit Information System (GSXT)
Note: This guide is general information. Regulations, tax rates and procedures change; check current texts and your customs broker before importing.
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