Sending money to a supplier you've never met is the most dangerous moment in sourcing. Here's our 7-step verification process that's saved our clients from countless scams.

Step 1: Business License Check

Every legitimate Chinese company has a business license (营业执照). Ask for a copy. Check the registration number on the National Enterprise Credit Information Publicity System. Verify: company name matches, registered address exists, business scope includes manufacturing, and registration date isn't recent.

Step 2: Factory Visit

The gold standard. Walk the production floor. Look at: raw materials storage, production lines running, workers present, finished goods inventory, and shipping labels with real destinations. We visit every factory before placing a client order.

Step 3: Video Call

If you can't visit, video call. Walk them through the factory on video. Ask to see specific things: "Show me the production line for product X" or "Show me your raw materials storage."

Step 4: Reference Check

Ask for 3 international client references. Contact them. Ask: delivery on time? Quality as expected? Any issues? Would you order again?

Step 5: Sample Order

Always order samples first. Don't just accept the "sample" they send — ask for a random production sample from a recent batch. Compare it to your specifications.

Step 6: Trade Assurance

On Alibaba, use Trade Assurance. It's not perfect, but it provides basic protection for quality and delivery disputes.

Step 7: Payment Terms

30/70 terms. Never 100% upfront. If a supplier insists, they either don't trust you or they're planning something. Either way, walk.