Avoiding Costly Mistakes: How to Verify Chinese Suppliers and Ensure Transaction Safety

When sourcing products from China, many foreign businesses focus on price, quality, or shipping terms—but overlook one crucial step: verifying the supplier’s legal identity.

Unfortunately, we’ve seen too many clients realize only after a dispute arises that:

• They don’t know the supplier’s official Chinese name,

• The name they have doesn’t match any legally registered company, or

• The salesperson's contact number is not a real number and the company disappears when problems occur.

These situations make it extremely difficult—if not impossible—to recover losses through legal means.

Why Verifying a Supplier in China Is So Important

China’s legal and commercial systems rely on Chinese-language records. Business licenses, company registrations, court documents—all are in Chinese and linked to the company’s registered Chinese name (not the English name shown on packaging or emails).

If you sign a contract using only an English name or informal name, it may not be enforceable in a Chinese court. Even worse, the company might not legally exist at all.

Here are some common pitfalls we’ve seen:

• A client pays a “supplier” with an English name that doesn’t match any Chinese registration;

• A company uses a trade name or group name instead of the entity that signed the contract;

• Phone numbers or websites belong to intermediaries, not the actual manufacturer.

In all these cases, clients thought they were doing everything right—until they lost money.

How We Can Help You Avoid These Risks

To make supplier verification simple and affordable, we offer the following services:

1. Company Verification & Phone Check

We’ll run a detailed check of the supplier’s:

• Official Chinese registration info (including name, address, business scope, status);

• Legal representative and shareholders;

• Litigation and enforcement records;

• Contact phone number—to confirm it connects to the real company.

This helps you confirm: Is this a real company? Are you dealing with the right entity?

2. On-site Company Visit

Want stronger proof before sending a large payment? We can:

• Visit the company’s location;

• Take photos or videos of the factory, office, signage, etc.;

• Report on visible business activity and legitimacy.

3. Contract Review

If you’ve already decided to go ahead with the deal, we can:

• Review or draft a bilingual contract based on Chinese legal standards;

• Ensure that the contract uses the correct legal entity and enforceable terms.

One Small Step Now Could Save You from Big Trouble Later

Verifying your supplier before sending payment is a small investment compared to the cost of chasing a fraud, suing the wrong company, or losing tens of thousands of dollars in an unrecoverable deal.

We’ve helped clients across industries—from machinery to chemicals to consumer goods—avoid bad deals, identify red flags early, and secure their transactions in China.

If you’re considering working with a Chinese supplier, feel free to contact us. A little due diligence can make a big difference.

---

Hongyu Huo

License No.: 13201202311712527

About the Author:

Hongyu is a highly skilled attorney specializing in both criminal and civil law matters.

She has successfully assisted numerous clients, earning a reputation for her exceptional legal acumen and dedication.

Hongyu is known for her approachable and friendly demeanor, making her easy to communicate with and well-liked by her clients. She always prioritizes her clients’ best interests, ensuring they receive the best possible legal advice and representation.

Whether dealing with complex criminal cases or intricate civil disputes, Hongyu’s commitment to excellence and her compassionate approach have made her a trusted and respected figure in the legal community.

(Contact: zlxlawyer@bjcelue.com or WhatsApp +86 18362959702)