# China Factory Audit Checklist
## 15 Things to Check Before You Pay a Deposit

By Xinya Zhang | China Sourcing Partner | chinasourcingpartners.com

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## Documentation Check (Before You Visit)

- [ ] 1. Business license (营业执照) — Cross-check on China's public enterprise database (gsxt.gov.cn)
- [ ] 2. Export license — Verify they're legally allowed to export
- [ ] 3. ISO / CE / FDA certificates — Ask for the certificate number, verify independently
- [ ] 4. Bank account matches company name on license — If it doesn't match, walk away

## Factory Floor Check (During Your Visit)

- [ ] 5. Production line organization — Clean, organized, machines running? Or dusty and idle?
- [ ] 6. Machine maintenance records — Ask to see the logbook. A factory that maintains machines maintains quality
- [ ] 7. Raw material storage — Open a roll at random. Check lot numbers match production
- [ ] 8. QC station — Is it staffed? Are there measurement tools within reach? Rejected pieces with defect tags?
- [ ] 9. Worker turnover — Ask an operator "how long have you worked here?" 3+ years = stable quality

## Worker Condition Check

- [ ] 10. Safety equipment — Gloves, goggles, masks in use
- [ ] 11. Break room and bathrooms — If bathrooms are filthy, management doesn't care about people. If they don't care about people, they don't care about your seams

## Production Check

- [ ] 12. Pre-production sample — Made on production tooling, not prototype tooling
- [ ] 13. Golden sample signed — Both parties sign and date the approved sample
- [ ] 14. Inline QC during production — Check at 20-30% completion, not at the end
- [ ] 15. Final inspection before balance payment — AQL 2.5 standard. Never pay balance until QC signs off

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## Quick Verification Card

Before wiring money, answer these:

1. Did I verify the business license independently? [ ]
2. Did I do a live video walk-through of the factory floor? [ ]
3. Did I check raw materials match the spec? [ ]
4. Did I see the QC station in action? [ ]
5. Am I paying to a company bank account (not personal)? [ ]
6. Do I have a PI with the company chop? [ ]
7. Is someone inspecting before I pay the balance? [ ]

If any answer is NO — don't send money yet.

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Shared by Xinya Zhang
China Sourcing Partner | On the factory floor, not behind a screen
chinasourcingpartners.com