China Credit Check – due diligence in China

What should the verification of a Chinese company 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 legitimate.

China credit check

First, you have to find a supplier in your industry. You can search for suppliers during trade fairs, on e-commerce marketplaces, and by networking. The chance of meeting a reliable supplier is bigger if it is an exhibitor at a trade fair.

A credit check, or due diligence, is a detailed examination of a company.

The most important thing that you can find out through the verification process is the type of company and its activity scope. Chinese companies that deal in international trade usually fall into two categories: these are either trade companies or manufacturers. Sometimes the former poses as 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 confirms the physical address of the factory. It is important if we want to proceed further and have quality control conducted. Companies that have factories cannot simply shut down overnight – it may happen to trade companies, especially after receiving your payment.

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

Order your Chinese supplier credit report right now and find out:

  • if the verified company exists
  • who the legal representative is
  • if it has been involved in fraud/court cases before
  • how big is it
  • who owns it
  • if the provided bank account number belongs to the company
  • and more.