Top 10 Methods to Find and Verify Chinese Manufacturer

Sep 07, 2020 Chapter 1. Sourcing

Sometimes you may find a Chinese manufacturer online, and you may have your doubts about his legitimacy. The firm he works with may look true and trustworthy, but you need to beware of scams.

The process of ensuring that you are in business with the right person can be tricky, and you should look at two main aspects. These are the aspects to look out for how to verify Chinese manufacturer.

 

#The suppliers capacity to supply the goods or service you need.

#The legitimacy of the business and the business’s financial capacity- You need to find out if the suppliers’ firm is on the verge of going broke.

 

How to find a good manufacturer in China(Supplier sourcing process)

 

How to find a good manufacturer in China

 

1. Need specification- know what you want

 

There are varieties in the market, so you need to know the available products and get the product information. The categories you can use to gain more data on Chinese suppliers include:

Big corporations versus small ones. You can also use 3rd party suppliers with an in-house capacity to develop their products versus suppliers dealing with sellouts and buy-ins, manufacturers versus 3rd party suppliers.  

Categorizing suppliers makes your appraisal process more straightforward, and narrowing down the range of products will be easy.  

 

2. Preliminary research- dig deeper to find out more about the field you are investing in

 

The research process has been made more accessible nowadays by the internet so you can easily create a table and record your search results about potential Chinese manufacturers.

 

3. Do market research

 

Thorough market research is essential, and it’s advisable to put the data related to your ideal products in the search engine. There will be different results relevant to your intended products, and you can use it to narrow down your supplier options.  Through research, you also learn about competitors in the market segment you are targeting.

 

4. Use genuine business platforms to get structured data about potential suppliers

 

There are many platforms where you can attain supplier information like Alibaba, made-in china.com, or bossgoo.com, and through these websites, you find real data about Chinese suppliers.

 

5. Narrow down your list of potential suppliers and remain with the best Chinese manufacturer

 

At this step, you will have found a supplier match, narrow down your options, and remain with the best. Contact your supplier and build a long-term relationship to have a great experience!

 

6. Get help from a local Chinese business agent

 

for interpretations due to the language barrier. The China sourcing agent will explain more about the preferred payment methods and systems, shipping, and delivery processes.

 

 

How to verify a Chinese manufacturer

 

1. Find out more about the supplier from the directories of Chinese suppliers and search engines like Google

 

There are many Chinese supplier websites and directories to find out details of their policies, backorders, damages, and returns. These are the platforms that can help you find out more about a supplier’s legitimacy.

The sites have suppliers’ contact details and location, so if a site doesn’t have the info you need, it may be suspicious. The search engines where you can find detailed information about a supplier include bing and google.

You can open bing or google and type the company name + scam + dishonest,  among other search engine variations. You will get all scandals, news, and other details of a company from the site. You can’t lack any traces on the internet once you search for the information you need.

You will find many supplier profiles on the internet, and there are B2B directories that contain all the supplier details. The renowned directories where you can find legit information include; global source, Alibaba, Hong Kong trade growth council’s, etc.

Through such directories and platforms, you can find reliable data about a supplier. The data is illustrated in reviews from other vendors. However, reviews say a lot about a supplier; you need to beware of self-promoters.

Many B2Bs are a good marketplace for verifying suppliers. Through these sources, you can tell whether a supplier is reliable or not. Through a platform like global sources, you can find out whether a supplier has a stable business.

The details to determine the stability of suppliers will be available on the platform. The data you will be looking for include suppliers’ start date in the business, brand name, number of staff, total sales, etc.

Through other search engines like Google or Bing, you may find data like the supplier’s previous trades. The trades a supplier has participated in will tell you a lot about the reputation of their company. That’s the secret to telling how reputable a Chinese supplier is before sourcing their services.

You can use it to tell the abilities of a supplier to check their booths during trade shows because they use the rental booths to invest in gaining customers. If a supplier has been attending the trade shows frequently, it means that their customer relationships are 100% earnest.

 

2. Confirm supplier details through a phone call

 

A safe way of verifying how genuine suppliers’ services are is by making a phone call. Nowadays, fake suppliers evade being tracked by the law by providing false data when registering for supplier permits.

The data they lie mostly about is their fax number, phone number, and emails. The trick to finding out if the Chinese supplier is genuine is by making a call to the provided contact information.

Now, if you have been wondering about how to verify a Chinese manufacturer, it’s that easy. Through a phone call, you can tell if they are scammers.

Chinese manufacturers’ landlines are the best ways of reaching out to them for inquiries about their services and test their authenticity.

If you wonder why the landline is safer than a phone call, in china, you can find that one Chinese manufacturer has hundreds of mobile numbers. That why calling a landline is the best way of verifying a supplier’s genuineness.

It’s hard for scammers to use a landline for scams; most use phone numbers.  Conduct basic checks before calling any Chinese manufacturers’ number.

 

3. Check the suppliers’ business licenses

 

If you are wondering how to easily verify a Chinese manufacturer, the business license will save you the struggle. All Chinese manufacturers register their businesses in their government because it’s a part of the policy.

If you notice any suspicious activity on the license, the supplier may be a fake Chinese manufacturer. The business registration numbers are unique for each Chinese manufacturer, so if you notice a supplier has an average number, their business is questionable.

It would be best if you didn’t deal with a supplier who has risky or suspicious activities on their license. They could probably be dealing in illegal businesses, and this can leave negative impacts on your business. If you doubt a supplier’s license, you can call the nearest administrative unit for further verification.

You can also contact a local Chinese bureau of commerce to inquire about more details of a supplier.

 

4. Ask for suppliers’ references

 

If you doubt a Chinese supplier’s legitimacy, you can ask for references before sourcing the Chinese manufacturer. An easy way of verifying a supplier is through references. Through suppliers’ reference letters, you can easily appraise the quality of output from their business. The previous customer reviews can also tell you about a supplier’s capacity to give you quality products.

You can also contact their previous customers and enquire about the service providence from the Chinese manufacturer.

 

 5. Ask for a sample from the manufacturer

 

Whenever you are sourcing for products, especially from online Chinese manufacturers, ensure that you have seen a sample before buying. Many disappointments come after sourcing for suppliers, and they deliver poor quality goods.

For instance, when you buy clothes in bulk, you need to ask for a sample because the fabric of a garment posted online may have a different color or texture when you physically see the fabric.

Quality differs; hence, to be sure of the brand you need and your supplier’s one, you have to ensure that they are matching. Quality matters a lot as long as you are in the supply and distribution business. You have to see whether products conform to specifications before making a purchase.

When you notice that a product doesn’t conform to quality expectations, you will source your products somewhere else.  A serious manufacturer will not have issues with providing you with the sample.

If a supplier acts weird after you ask for a sample, then he or she isn’t a legal supplier. As soon as you notice suspicious activities in a supplier, you should avoid doing business with them.

For better verification of a supplier’s genuineness, you can ask for their audit reports to see the supplier’s stability.

 

6. Talk about Cash matters with your supplier

 

Test your potential supplier by asking them about money matters to see if you are on the same page. When it comes to money, you will easily tell if your supplier is legit. A good way of testing the supplier is by telling them that your agent will pick the goods and pay on delivery. If the supplier refuses, then he is probably a scammer.

If you are doing wireless transactions, beware of fraudulent suppliers. The common way of paying for goods to a Chinese manufacturer is through MoneyGram, TT, or western union.

 

7. Carry out a factory audit

 

Pretend to be checking the manufacturers’ audit reports and check his behavior or reaction. If you see him getting all tense, he has a lot to hide, and he is a suspicious dealer. That’s how you verify Chinese manufacturers easily.

You can mention to the Chinese manufacturer that you will conduct an audit before buying their products through an email address. If the supplier gives you lame excuses, you should take it as a red flag. The best tool to verify a supplier’s legitimacy is through a factory audit.

 

8. Use the Chinese court databases to find out more about a supplier

 

Through a supreme court database search, you can find all the details of a supplier and decide whether you will do business with them or not. The process involved isn’t even hard; all you have to do is type a supplier’s name in the Searching tool, and you will get all the information you need about the supplier.

Through the database, you can see all the supplier’s history and easily tell if they are legit or not.  Accessing the site is easy, but you need to understand Chinese because the data is available only in chines language.

 

9. Conduct some Background drafts on the cheap

 

When you are busy with how to verify Chinese manufacturers, this is among the best ways to investigate a supplier’s capacity. Many service providers can verify suppliers for you at a price. These include the GLoBIS, who gives you a detailed report about a supplier once you give them a name. They give a report with the details of the suppliers’ scope of work, business representatives, legal compliance, licenses, shareholders, and financial records, among others. Easy-peasy right?

There is another platform called China checkup, which you can use to verify your Chinese manufacturer before sourcing goods.

 

10. Go to the company personally

 

If you are a doubting Thomas, the best way to verify if the manufacturer is legit is by traveling to their factory. Conduct a factory visit and talk to the Chinese manufacturer face to face about the quality of the products, prices, and quality assurance, among other things like delivery and shipment.

The majority of vendors love this method because it’s easy to tell about suppliers’ due diligence. Through the process, you can tell if you can trust the supplier after your conversation. Supplier negotiations can also be conducted best when you meet face to face with the Chinese manufacturer.

As soon as you build a stable working relationship with the Chinese manufacturer, you can keep track of your activities through frequent supplier checks.

 

 

How to easily navigate the language barrier and payment methods when doing business with Chinese manufacturers

It is normal to have uncertainties when doing business with Chinese manufacturers due to language barriers. Payment methods can also be a major issue, but here is how to deal with these issues.

Where can I find Chinese manufacturers?

Firstly get a supplier from reliable platforms. Here are 6 places to find manufacturers in China:

      • Alibaba
      • China Sources
      • HKDC
      • Smart China Sourcing
      • Made-in-China
      • Local trade show

 

agreement with Chinese company

6 steps to making contractual supply agreement with Chinese company

 

When making any deals with Chinese contract manufacturers, you must be cautious about several tips to enter a legal, contractual agreement.

You may end up in serious trouble in case there are any contractual breaches. Business law has severe repercussions when compared to other types of law. You need to follow several tips when sign contract in China.

How to create a valid Chinese manufacture contract.

The tips are:

 

1. Ensure that you entered in a contractual agreement with the right party

 

Before signing any business contract, you should read it carefully. Check all the financial requirements and resources in the contract because these are the things that may land you in serious trouble.

It would be best if you contracted with a company with sufficient financial resources when things go south. Many vendors overlook this factor because they contract through third-party firms that are unaffiliated by actual CMs.

In case defects are found in the goods, the vendor can report the agents, and the CM will be free from the case.

When signing the contract, look out because several Chinese manufacturers’ businesses go by their Chinese names, making sure that they identify with legal names. The agreement should entail their Chinese and English legal names.

 

2. Ensure that all pricing provisions and the BOM is included in the agreement

 

The Bill of materials should be included because it’s usually the list containing materials used in the product fabrication process.

With a BOM, you can get all the information about the product you are procuring, and discretion is required because the manufacturer may have some secret products for competitive advantage.

The BOM is necessary because in case the products become defective, you can substitute them easily.

Pricing provisions are essential because you need to know unit prices, inflation matters, and labor costs. Know all transfer rules and regulations as well as VAT impacts before signing the contract.

 

3. State your quality specifications, requirements, packaging, and warranty

 

Ensure that you have included details of your quality expectations and other factors that help in quality control.

During inspection processes, this helps a lot so make sure it’s entailed in the supplier agreement. Please do not go for any products that lack a warranty because they can be defective anytime.

All products need to be sampled upon delivery via inspection; hence, you can ask for the replacement of defective products with your agreement.

If a supplier refuses to give you a warranty, they may be a fake Chinese manufacturer, and the products may be fake. The only way to tell if a supplier has suspicious activities is when they don’t offer quality assurance.

Through warranty, you get an assurance that the products are made of high-quality components; hence they can’t get defective.

Before signing the agreement, check your shipment agreements with the Chinese manufacturer because you may be frustrated on the other side of the bay during delivery. Dates are very important in every contract. When signing a contract, look out for all these factors.

 

4. Check on clarification of ownership rights of molds

 

Look out when going into a contractual agreement with a Chinese manufacturer because they can easily hold you hostage or tooling.

Consider all the information on tooling lists and prices included in the transfer agreements. It would help if you had liquidated damage provisions for your safety or ended up stranded in a Chinese court later.

These factors can damage a vendor easily without their knowledge. Don’t be in a hurry to sign any contractual agreements with a Chinese manufacturer.

 

5. Ensure that your intellectual property rights are protected in the contract.

 

How to protect your intellectual property?

All products have patents and other protection rights of the market, vendor, and Chinese manufacturer. When you register for trademarks and copyrights, you get protection as a vendor, and the manufacturer will get protected.

Beware when signing the contract because you can easily end up in prison for breaching the patents rights. Many Chinese manufacturers and generally all companies have their top secrets, which they protect because it’s their strategy of gaining competitive advantage.

When a company protects its products through trademarks, they prevent scandals from counterfeit goods production. You may have heard about something like the top secrets of coca-cola company products.

Patents protect Their data, and an employee in the company cannot breach the information. Breach of copyrights and trademarks may land you in jail as a vendor.

You will be safe as a vendor through these protection rights even when counterfeit products emerge later after you’ve made your purchase.

The disposal of the defective products will not affect you as a vendor because you will be protected under the liquidated provisions of damages.

 

6. Be cautious about dispute resolution matters.

 

When you resolve disputes in any Chinese contractual agreement, you need to be careful because the resolutions depend on the dispute type.

It’s normal for disputes to arise between contractors and buyers, especially when you are sourcing for goods from Chinese manufacturers. Nobody is perfect; hence some disputes may arise, and the jurisdiction of china’s government will be involved.

 Some disputes that may arise include failure to meet delivery deadlines, product damages, and monetary damages.

Solving such disputes may be hard because you are in international business; hence the supplier may take you in circles.

Be cautious when signing the contractual agreements for your safety as a vendor. It’s essential to look out because when some disputes arise, the Chinese government may not be obligated to recognize or enforce their court judgments in your state government; hence, you will lose.

 

 

Chinese manufacturer FAQ

 

How do I know if a product is made in China?

Check the bar-code.

First 3 numbers are 690 or 691 or 692. The product was made in China.

First 3 numbers the numbers are 00 thru 09. The product was made in the USA made.

 

Where are most Chinese manufacturers?

Guangdong, Shenzhen, Zhejiang

 

Where are China’s most factories?

Guangdong province. Guangdong province Has 60,000+ factories. Those factories every day produce an amount of more than $300 million worth of goods—One-third of the world’s production of shoes, textiles and toys.

 

Conclusion:

In my opinion, the best way to find and verify Chinese manufacturers is to find a reliable China sourcing agent.

Supplyia can help you build your supply Chain and verify the Chinese manufacturer.  So you don’t need to waste too much time on sourcing supplier in China.

Nowadays, the business world is filled with fakes, especially in supply chain and distribution. Procurement is an area with many conmen and people that cannot be trusted; hence you need to rethink before choosing a supplier.

Leave your comment if you need any help from us.

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