How to Verify a Chinese Supplier Before Paying a Deposit

Verification has one job: to confirm that the company you are about to pay is the company that will make your product, and that the money lands in that company's account. Most losses don't come from fake factories. They come from mismatches: the licence says one name, the factory gate another, the bank account a third.

This checklist works in four layers, in the order your money is at risk. The first three can be done from your desk in an afternoon and cost nothing.

Layer 1: Is the company real, and is it the one quoting you?

• Get the business licence (营业执照) as a photo or PDF and note the 18-character Unified Social Credit Code (统一社会信用代码).
• Look the code up on GSXT (gsxt.gov.cn), the National Enterprise Credit Information Publicity System. This is the official registry. Qichacha (企查查) and Tianyancha (天眼查) are commercial databases that present the same records more conveniently, but GSXT is the source.
• Match five fields: the Chinese company name (English names are not registered), status (存续 or 在业 means active; 注销 or 吊销 means closed or revoked), legal representative, registered address and date of establishment.
• Check the lists. On GSXT, look for the abnormal operations list (经营异常名录) and the serious violations list. For court records, search China Judgments Online and the court enforcement disclosure site. A few contract disputes are normal for a busy exporter; a pattern of unpaid judgments is not.
• Read registered capital properly. Under China's revised Company Law, in force since 1 July 2024, a limited company's subscribed capital must be paid in within five years. Compare subscribed (认缴) with paid-in (实缴) capital in the annual report; a large registered capital with nothing paid in proves little.
• Check headcount. Annual reports show how many employees are covered by social insurance (参保人数). A "300-worker factory" with six insured staff deserves a question. Treat it as a prompt, not proof, since small firms often under-report.

Layer 2: Factory or trading company, and does it matter?

• Business scope (经营范围). Manufacturers usually list production terms such as 生产, 制造 or 加工 for your product type. Trading companies list 销售, 批发 or 货物进出口.
• Address versus factory. A registered address in a city office tower and factory photos from a plant 200 km away is common. Ask which company owns the plant and whether that company will sign your order.
• The live video test. Ask for an unscheduled video call that walks from the office to the line making your product type, with today's date written on paper and the company sign at the gate in shot.
• Trading companies are not the enemy. Many Yiwu suppliers are trading companies that handle small mixed orders well. What matters is knowing which you are dealing with, and that the price reflects it. More in factory or trading company.

Layer 3: Can they make your product to your market's rules?

• Same product, in production. Ask for photos and video of your product type on the line, not catalogue images.
• Capacity. Ask how many machines or lines make this item, the output per shift and what else is booked in your production window. Compare that with your quantity and delivery date.
• Export history. Ask which markets they ship this product to, and for a recent export document for the same item with prices blacked out. China Customs' enterprise credit platform shows whether a company is registered with customs.
• Certificates. For ISO 9001, BSCI or similar, check the certificate number with the issuing certification body, or on IAF CertSearch for accredited ISO certificates. The holder's name and address must match the licence, and the scope must cover your product.
• Test reports. Check four things: the applicant or manufacturer is this supplier; the product and material match yours; the date is recent enough to describe current production; the lab can confirm it. Major labs such as SGS, Intertek, TÜV and Bureau Veritas verify reports by number. For food-contact items, see what food-contact certification actually means.

Layer 4: Does the money go to the right place?

• Names must match. The beneficiary on the proforma invoice and the bank account must be the company on the licence. If a separate export agent receives payment, get that arrangement in writing, naming the agent.
• Never act on a changed account by chat or email. Confirm any new bank details by phone or video with a contact you already know, never through the message that announced the change.
• Stage the payments. Pay the deposit only after the specification or sample is approved in writing, and the balance only after you have seen the inspection report. See how to pay Chinese suppliers safely.

Red flags that should stop the deposit

• The licence, the proforma invoice and the bank beneficiary show different names.
• The company was registered months ago but claims fifteen years of experience.
• Status is not active, or the company is on the abnormal operations list.
• No live video call, or "the factory manager is travelling" every time you ask.
• Certificates or test reports issued to another company, or for a different material.
• A price far below comparable quotes with no explanation (how to compare quotes).
• Pressure to pay today, or to pay a personal or offshore account "for tax reasons".

What desk checks cannot tell you

Desk checks prove identity and paperwork, not quality or capacity. For a first order with real money at stake, add a factory audit or a pre-production visit, and always a pre-shipment inspection before the balance.

Verification also describes a company on the day you checked. Repeat the bank and status checks before large reorders, and whenever the company name or account changes.

Your verification record

Check	Where	Pass if
Credit code and status	GSXT	Active; name matches the proforma invoice
Legal representative and address	GSXT	Match the licence photo
Abnormal or violation lists	GSXT	Not listed
Court records	Judgments and enforcement sites	No pattern of unpaid judgments
Business scope	Licence	Covers your product; production terms if they claim to be a factory
Insured employees	Annual report	Plausible for the size they claim
Live walk-through	Video call	Your product type on the line, today's date in shot
Certificates	Issuing body or IAF CertSearch	Valid, same holder, scope covers your product
Test reports	The lab's verification service	Same product and material, recent, same applicant or manufacturer
Bank beneficiary	Proforma invoice and bank details	Same name as the licence

FAQ

Can I verify a supplier if I don't read Chinese? Partly. GSXT is Chinese-only, but you can search by the credit code and browser translation handles most fields. The judgement calls, such as reading business scope or annual reports, are where a Chinese-speaking agent earns its fee.

Is a "Verified Supplier" badge on a platform enough? No. A badge means the platform checked something, usually that the company exists and pays for membership. It does not match the licence, the factory and the bank account for you.

How long does verification take? Desk checks take a few hours to a day. A factory audit takes a day on site, plus the report.

Want a written verdict before you pay? Our supplier verification service checks the company, the factory and the quote, and tells you to proceed, renegotiate or walk away.