A practical due diligence framework for international buyers to identify red flags and confirm company legitimacy.
Follow this step-by-step blueprint to audit Chinese trading partners prior to placing large purchase orders.
Ask for a high-resolution scan of their official business license. Legit companies will supply this immediately. Check the 18-digit Unified Social Credit Code, official Chinese legal name, and make sure their registration status is "存续" (Active) or "在营" (In Business).
Inspect the official registration details. Real manufacturers have words like "生产" (Production), "制造" (Manufacture), or "加工" (Processing) in their Chinese business scope. If it only states "批发" (Wholesale), "零售" (Retail), or "进出口" (Import/Export), they are a trading agent.
Locate their registered address. If they claim to have a "large factory campus" but their official registered address is a suite number in an urban commercial skyscraper, they do not own the factory floor. They are likely subcontracting production.
Match the payee name on the Proforma Invoice (PI) with their business license. If the PI requests money transfer to an offshore shell account (e.g. HK limited company, private bank name, or digital currency wallet), ask for written explanation of ownership before wiring money.
Perform a WHOIS domain query on their website. A domain registered only a few months ago for a company that claims "15 years of industry experience" is a massive red flag. Compare their Alibaba profiles, 1688 profiles, and social media footprint.
We cross-reference official government databases, run bank coordinate audits, and verify legal representative signatures within minutes. Avoid manual translation hurdles and get a clean PDF risk scorecard.
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