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How to Verify a Chinese Factory Before You Place an Order

Updated · 6 min read

Key takeaways

  • Check the 18-digit Unified Social Credit Code on the business license in China's National Enterprise Credit Information Publicity System.
  • Pay only to a company bank account whose name matches the business license.
  • Verify test reports with the lab that issued them; a CE mark alone proves little.
  • Approve a sample before mass production and book a pre-shipment inspection for larger orders.

1. Check the business license

Every Chinese company has a business license with an 18-digit Unified Social Credit Code. Ask for a copy, then look the company up in the National Enterprise Credit Information Publicity System (gsxt.gov.cn). Confirm that the name, address and registration status match, and that the business scope includes manufacturing of your product type, not only trading.

2. Confirm the production site

Ask for a live video call that walks through the production line, warehouse and quality control area. Compare what you see with the address on the license. For large or long-term orders, a third-party factory audit gives you an independent report on capacity, equipment and quality systems.

3. Verify certificates and test reports

Some marks, such as CE, are declared by the manufacturer itself, so the mark on its own proves little. Ask for the test report behind it, check that the report names this factory and this product model, and confirm the report number with the laboratory that issued it. Testing labs generally let you verify a report directly.

4. Order samples

Samples show the real quality and how the factory communicates. Test them against your specifications and keep an approved sample as the reference for mass production. Sample and shipping costs are often charged and sometimes credited against the first order.

5. Inspect before shipment

A pre-shipment inspection checks a random sample of finished goods against your specifications, usually using AQL sampling levels. It costs far less than receiving a container of defective goods.

6. Use safe payment terms

  • A common structure is a 30% deposit and 70% before shipment, or against a copy of the bill of lading.
  • Pay only to a corporate account whose name matches the business license, never to a personal account.
  • Be suspicious of last-minute changes to bank details sent by email. Confirm them by phone or video call.
  • For larger orders, a letter of credit (L/C) protects both sides.

Checked manufacturers to start with

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