Why supplier verification matters
Foreign buyers often focus on samples, price, and delivery time, but the most basic legal question is simpler: who exactly are you contracting with? In China, the company name, unified social credit code, legal representative, business scope, bank account, and company chop should point to the same legal entity.
Fraud and supplier disputes often reveal themselves through mismatches. A sales representative uses one company name, the quotation shows another, the payment account belongs to a third party, and the factory shown in videos may not belong to the seller at all.
What I check
- Business Licence and Unified Social Credit Code.
- Government registry status, registered capital, and legal representative.
- Registered business scope and import/export wording where relevant.
- Administrative penalties, abnormal operation flags, and basic litigation records.
- Whether the receiving bank account matches the supplier's registered legal name.
- Whether the contract signatory appears authorised or needs written authorisation.
When to run due diligence
The best time is before paying a deposit. It is also useful before signing a long-term supply contract, appointing an OEM manufacturer, meeting a supplier at the Canton Fair, or sending product designs and specifications. For higher-value orders, due diligence should be combined with contract review, inspection rights, and a clear dispute resolution clause.
What you receive
The output is practical rather than academic. I summarise who the supplier is, whether the key records match, what red flags appear, and what should be fixed before payment or signing. If the risk is serious, I can advise whether to pause the order, require a different contracting party, request authorisation documents, or revise the payment structure.
Documents to provide
- Supplier's Chinese company name or business licence.
- Quotation, invoice, draft contract, or payment request.
- Bank account information for the proposed payment.
- Website, Alibaba page, Canton Fair booth information, or contact details.
- Order value, product type, and deadline for decision-making.