How to Verify if a Chinese Company is Legitimate

Before doing business with a Chinese company, verification is essential. Scams targeting foreign businesses are common, and even legitimate-looking companies may have hidden problems. Here's how to check.

Step 1: Get the Company's Official Information

Ask for these documents:

• Business License (营业执照): Shows company name, registration number, legal representative, registered capital, and business scope
• Unified Social Credit Code: 18-digit unique identifier
• Legal representative's ID (for important transactions)

Step 2: Verify on Official Government Database

Use the National Enterprise Credit Information Publicity System:

• Website: gsxt.gov.cn
• Search by company name or registration number
• Free and official government source

What to Check:

• Registration status: Should be "存续" (active)
• Registered capital: Is it reasonable for their claimed business size?
• Business scope: Does it cover what they're selling you?
• Establishment date: New companies are higher risk
• Legal representative: Match with who you're dealing with?
• Abnormal operations list: Any red flags?

Step 3: Check for Legal Issues

Court Records

Search for lawsuits involving the company:

• China Judgments Online: wenshu.court.gov.cn
• Look for patterns of disputes with customers or suppliers

Blacklist Check

Check if they're on the dishonest persons list:

• Credit China: creditchina.gov.cn
• Companies or individuals who haven't paid court judgments

Step 4: Verify Their Claims

• Factory claims: Request video call tour or third-party inspection
• Certifications: Verify ISO, CE, etc. with issuing bodies
• Export history: Check customs data services
• References: Ask for and contact other foreign customers

Red Flags to Watch For

• Reluctance to provide business license
• Company name doesn't match documents
• Very new company claiming years of experience
• Registered capital extremely low for claimed business volume
• Business scope doesn't include their products
• Multiple lawsuits or on blacklist
• Pressure to pay quickly or unusual payment methods
• Too-good-to-be-true pricing

Professional Due Diligence

For significant transactions, consider professional verification:

• Company background check: Comprehensive report on registration, financials, litigation
• Site visit: Physical verification of facilities
• Financial review: Credit reports and financial statements
• Legal review: Contract and compliance check

Ongoing Monitoring

Verification isn't one-time:

• Set up alerts for company changes
• Periodically re-check registration status
• Monitor for new litigation