Opinions, knowledge and resources from China Checkup's expert contributors
Before doing business in China it is important to make sure you are dealing with a legitimately registered business, but how exactly can you do that?
Travelling across the world to visit Chinese factories is a hugely time consuming and expensive process, so asking suppliers to provide, and then checking documentation is a better option.
This method to verify China company credentials is both quick and affordable, and allows you to get a clearer idea of the company’s operations.
With this in mind we have prepared a list of 9 documents you can use to verify a China company.
When you make payments to Chinese suppliers, make sure that as a minimum precaution you only pay into business accounts. You might also want to request a bank account certificate, but be careful. In any case, you can also get this verified.
No matter the turnover, all business in China must be VAT registered if they make taxable transactions. Because of this, all Chinese suppliers should be able to show you a valid tax registration certificate. This is by no-means bulletproof, but may catch some of the lazier scammers out there. Verify it here!
Foreign trade registration and import / export licenses can be somewhat confusing in China. A company wishing to engage in foreign trade must be have foreign trade registration as an organisation, and must also obtain an import / export license for each transaction.
If you’re sourcing from a Chinese supplier or trading company, make sure that all of this documentation is correct. You can verify foreign trade status at low cost online.
Where relevant, request to see an ISO 9001 or ISO 14001 certificate from your Chinese supplier. Again, you should get this document verified if it’s shown to you by a Chinese company. You can even verify this certificate online by yourself.
It’s essential to have tests carried out on the products a supplier is manufacturing for you, ideally at several stages of the process to identify issues wherever they may arise. A supplier should be able to show you previous product testing reports and you can verify these, but a crucial step might be to have your own tests carried out independently.
It’s essential to get a Chinese supplier audited before making an order with them. Verification of documents should be seen as an initial screening before more extensive checks are made via an audit.
As with everything else, references can be faked, but that doesn’t mean you shouldn’t ask for them. Any legitimate supplier in China should be able to provide some references from previous clients. Always verify these with the client in question though, otherwise they’re worthless.
Do you agree that these documents are useful for screening Chinese suppliers? What else would you add?
China Checkup offers a wide range of convenient and affordable company verification and certificate verification services that greatly simplifies the process of verifying a Chinese company. Verify with confidence, use China Checkup verification services.
This glossary identifies the different Chinese company registration status terms that appear on official Mainland China company records.
If you are trying to find out if a Chinese company's registration has been revoked, cancelled or rescinded we hope the terms in this glossary will be useful to you.
Keep reading to find out about the various Chinese terms used to describe a company's registration status and get our English translations.
One of the most common ways to pay a Chinese supplier is to make a China T/T Payment, but it is not a method that comes without risk.
We regularly see cases where Chinese suppliers request payments to individual accounts, third parties, offshore accounts and offshore entities, rather than to their own Mainland Chinese corporate bank accounts.
Before sending a China T/T payment, pause and take a moment to make these 4 simple checks - they will help you ensure your payment is really going to the correct Mainland China entity.
In recent years freight trains from China have been capturing newspaper headlines by arriving in more and more countries.
Perhaps there is no more striking example of this then when the first China to Spain cargo train returned to Yiwu having covered a world record 16,156-mile round trip in 2015.
Read this article to learn about China's push for international rail cargo and find our which countries have already received freight trains from China.