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How to find a reliable supplier in China: a 7-step checklist
Short answer: verify the business licence, confirm the company is a real manufacturer, pay only to a bank account in the same company name, audit the factory, approve a signed sample, sign a written contract, and pay the balance only after a pre-shipment inspection passes.
1. Check the business licence
Every legal Chinese company has a business licence with an 18-character Unified Social Credit Code. Ask for a photo of it and search the code on the National Enterprise Credit Information Publicity System. The company name, registered capital and founding date should match what the seller told you.
2. Confirm it is a factory, not a trader
Read the "business scope" on the licence. Manufacturers list production (生产 or 制造). Trading companies are not bad, but you should know who you are dealing with and what margin sits in the price.
3. Match the bank account to the licence
Most supplier fraud happens here. Pay only a company account whose name exactly matches the licence. Be careful if you are asked to pay a personal account or an account in another country.
4. Audit the factory
A video call is a start. An on-site audit is better: equipment, number of workers, current orders on the line, and certificates such as ISO 9001, BSCI or product-specific test reports.
5. Approve a golden sample
Approve a sample, sign and date it, and keep one copy with the factory and one with you or your agent. It becomes the standard used in the final inspection.
6. Sign a written contract
Write down specifications, colours, packaging, labelling, delivery date, late-delivery penalties and payment terms. A common split is 30% deposit and 70% after inspection.
7. Inspect before paying the balance
A pre-shipment inspection checks a random sample using AQL levels, usually 2.5 for major defects. If the goods fail, the factory reworks them before you pay.
When to use a sourcing agent
If you cannot visit China, if the order is above about USD 2,000, or if it is your first order with a new supplier, a sourcing agent who charges a transparent service fee is usually cheaper than one bad shipment. See our fees or get a free sourcing plan.