SUPPLIER RISK
How to Verify a Chinese Supplier Before Payment
A practical five-part review of the legal entity, operating status, payment recipient, physical presence and transaction documents.
1. Identify the Chinese legal entity
Start with the Chinese company name and registration number—not only an English trading name, Alibaba profile or WeChat contact.
2. Check the operating record
Review registration status, legal representative, registered address, business scope and available public judicial or enforcement signals.
3. Match the receiving account
Compare the beneficiary on the payment instruction with the contracting party and the company shown on the PI. Any unexplained mismatch needs clarification before payment.
4. Verify physical presence when needed
For higher-risk orders, an on-site visit can record the disclosed shop, office or factory and the observable people, inventory and equipment at that time.
5. Keep a written evidence trail
Save the PI, verification findings, payment instructions and agreed next steps. Verification reduces information gaps; it does not guarantee future performance.