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.
Did you know that there are 7 different regions of China which are often cited in official sources when describing China's geography, climate, economy and governance?
Each of these regions are comprised of several Chinese provinces which are in close proximity and share certain geographical and cultural similarities.
Keep reading to view a map and learn more about the 7 regions of China.
If you have done business with a Chinese company there is a good chance that their staff have provided you with a scan or photo of their China ID Card.
This ID Card, also known as the Resident Identity Card, is compulsory for all Chinese citizens and contains much information about the holder.
Each China ID Card has a unique 18-digit Citizen Identity Number and knowing this number alone can tell you the holder's date of birth, place of birth and gender.
Foreign companies are doing business in China for a wide range of different reasons - including importing, exporting, setting up joint ventures, investing, developing new markets, developing new partnerships & more - but in which Chinese provinces are these efforts focused?
Is most business done in China's gateway municipalities of Shanghai and Beijing, or do foreign companies flock to the manufacturing powerhouse provinces of Guangdong and Zhejiang?
Read this article to learn what are, according to our research, the 9 China provinces where foreign companies do business the most.