Credit Check of a Company from China

What the verification of a Chinese company should look like? What kind of information can be obtained through this process? Is it really an essential step, or can the whole process be skipped? We will answer how to check if a Chinese company is genuine.

Verification of a Chinese company

Usually, the whole process begins when we’ve finally found a suitable Chinese company. Many depend on when we made the first successful contact. If we simply received an e-mail offer, the risk factor is higher than in the case in which we met our supplier during trade shows.

The most important thing that we will find out through the verification process is the type of company and its scope of activities. Chinese companies, which deal in international trade, usually fall into two categories: these are either trade companies or manufacturing companies. Sometimes the former impersonates the latter, but a proper verification process will help to reveal the real identity of the company.

In many cases, the person who claims to represent the Chinese company has no legal title to do so. Therefore it is always necessary to find out who is the legal representative of the company.

Verification is helpful in revealing the physical address of the factory. It is important if we want to proceed further and send someone to check our shipment. On the other hand, ISO 9001 certificate is awarded to a particular facility, not to the company as a whole. Companies that have factories cannot simply shut down overnight – it may happen though to some of the trading companies, especially after receiving our payment.

Through the verification process, the authenticity of provided documents and certificates will also be checked. The rule is simple: the Chinese are able to forge everything, but the truth can usually be easily revealed.

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