Most China supplier fraud and supplier mismatch problems happen before the first payment leaves your account. A polished website, a Gold Supplier badge, and a few confident-sounding messages are not enough to know whether a Chinese business is legitimate and capable.
These are the practical checks NZ and AU buyers can make before committing money to a Chinese supplier.
Check the Chinese company name
Ask for the supplier’s full Chinese company name — not just their English trading name. The Chinese company name is what appears in official records. If a supplier is reluctant to provide it, that is a warning sign.
Cross-check the Chinese company name against National Enterprise Credit Information Publicity System (NECIPS) or similar public records. This shows registration status, business scope, registered capital, and legal representative.
Check the payment name matches the company
Before transferring money, confirm that the payment account name matches the company name you verified. Fraud often works by redirecting payment to a different entity — an individual, a shell company, or a third-party account — at the last moment.
If the payment name does not match the supplier’s verified company name, stop and ask for an explanation before proceeding.
Review the business scope
A Chinese company’s registered business scope lists what activities it is legally permitted to conduct. A supplier claiming to manufacture electronics should have a scope that includes manufacturing. A supplier with only a trading scope but claiming to be a factory warrants further investigation.
Check the registration address
Compare the registered address against the factory or warehouse address the supplier has given you. Significant discrepancies — for example, a factory supposedly in Guangzhou with a registered address in a different province — are worth asking about.
Look at online signals
Search for the company name, website, and contact details. Check for complaints on sourcing forums, Alibaba feedback, or other platforms. Look for inconsistencies in product photos, specifications, or company descriptions across different listings.
No single online signal is conclusive. The pattern of signals matters more than any single result.
Ask for references or sample orders
For larger orders, ask for references from other buyers or request a small sample order before committing to production quantities. A supplier confident in their own quality will generally be willing to provide samples.
What these checks cannot do
These checks reduce risk — they do not eliminate it. Public records may be outdated. A legitimate company can still produce poor-quality goods or fail to meet deadlines. Checks should be combined with clear purchase orders, sample approvals, and production monitoring where appropriate.
Summary
Supplier checks before payment are practical due diligence, not excessive caution. Most buyers who experience supplier fraud say they skipped steps they knew existed. A few hours of checking before payment is a far better use of time than recovering from a fraudulent transaction.
ANZSBS can help NZ and AU buyers check Chinese suppliers before payment. Send the supplier details and we will review what is available.