How to Verify a Chinese Supplier Before You Send Money (2026)
By Jing (based in China) + Kai | Last verified: March 2026
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As of 2026, 12% of new Alibaba supplier listings are either outright scams or trading companies pretending to be factories. This guide walks you through every check you need to do before you send a cent.
Intellectual property: Own trademarks/patents matching their products?
Registration address: Match to business license and Alibaba profile
Other free checks
Google reverse image search: Upload factory photos — if they appear on other listings, they're stolen
Alibaba red flags: Generic descriptions, no verified buyer reviews, prices 30%+ below competitors, requests to go off-platform immediately
SAIC registry: Cross-verify registration number at gsxt.gov.cn
3. What to look for in a business license
Unified Social Credit Code: 18-digit number — verify on Tianyancha
Establishment date: Avoid < 2 years old (78% of scams in 2025 involved companies < 12 months old)
Registered capital: At least ¥1 million for manufacturers. ¥100,000 or less = small trading company.
Scope of business: Must include "manufacturing" or "production". "Import/export" or "trade" only = not a factory.
Legal representative: Must match the bank account name they ask you to pay.
Red flags: Blurry license photos, edited details, refusal to send full license, details that don't match public records.
4. Factory photos and video calls
Always request a live video tour before placing an order:
Schedule at a random time during Chinese working hours (9 AM–6 PM GMT+8)
Ask to see: factory entrance sign, workers producing your product, branded packaging from other clients, production line capacity, warehouse with finished goods
Take screenshots and reverse image search them later
5. Sample orders before bulk
Always order a sample first — non-negotiable
Test material quality, dimensions, functionality, packaging
Have the supplier sign and date the approved sample
Contract clause: right to cancel + full deposit refund if bulk doesn't match sample
6. Payment safety
Never send 100% upfront. This is the #1 mistake new buyers make.
Standard terms: 30% deposit, 70% balance before shipment (after inspection)
Under $10,000: Use Alibaba Trade Assurance (escrow until you confirm receipt)
Wire transfer: Only to a bank account in the same name as the business license
Never pay via: Western Union, PayPal (for goods), or cryptocurrency — no buyer protection
7. Inspection services
For orders over $2,000, get a third-party inspection before paying the balance:
Type
When
Cost
During-production (DPI)
20–30% of order complete
$250–$350
Pre-shipment (PSI)
100% complete, packed
$200–$300
Use SGS, Intertek, or BV. Avoid $100 inspection services — they often take bribes.