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How to Verify Chinese Suppliers: A 2025 Step-by-Step Checklist

Find Original Factories
Find Original Factories

Verifying Chinese suppliers isn't just due diligence—it's survival in today's complex sourcing landscape. At Cherry Tech, we've developed a 7-step verification protocol refined through auditing 850+ factories:

Step 1: Business License Authentication

  • Cross-check registration numbers on China's National Enterprise Credit Information Public System (www.gsxt.gov.cn)

  • Validate scope matches production capabilities (e.g., "electronic components manufacturing" not just "trading")

  • Red flag alert: Over 37% of fraudulent suppliers in 2024 had mismatched business scopes

Step 2: Factory Certification Deep Dive

  • Authenticate ISO certificates via CNAS database (www.cnas.org.cn)

  • Demand unedited factory floor videos showing:

    • Active production lines

    • Quality control stations

    • Raw material inventory

  • Pro tip: Request timestamps showing current date

Step 3: Financial Health Check

  • Obtain credit reports from Sinotrust or Dun & Bradstreet China

  • Analyze payment patterns: Suppliers delaying raw material payments signal distress

  • Minimum recommended registered capital:

    • Electronics: ¥5M+

    • Textiles: ¥2M+

Step 4: Production Capacity Validation

  • Calculate true capacity:

    Actual Output = (Number of Machines) × (Operating Hours) × (Efficiency Rate)

  • Verify through:

    • Machine purchase invoices

    • Production logs for past 3 months

    • Utility bills matching claimed output

Step 5: Social Compliance Audit

  • Use our 360° Virtual Audit Template to check:

    • Working hour records (max 60 hrs/week)

    • Safety equipment compliance

    • Dormitory conditions

  • Critical finding: 68% of Guangdong factories fail wage compliance

Step 6: Reference Verification

  • Contact 3 current clients using our Supplier Reference Questionnaire:

    "On a scale of 1-10, how accurately does defect rate match contract terms?"

    "Describe their response time for quality complaints"

Step 7: Pilot Order Protocol

  • Start with 10% of planned volume

  • Include quality traps in specifications:

    • Hidden measurement points

    • Material composition tests

    • Packaging stress tests

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