One document. Three minutes. That’s all it takes to know if you’re talking to a real factory or a trading company with a good Alibaba page.
Ask for the 营业执照 — the business license. If they hesitate, you have your answer.
The Key Fields — What to Check
The license is a single page. Here’s what matters:
统一社会信用代码 (Unified Social Credit Code). An 18-digit number. This is the company’s unique ID. Copy it. Paste it into China’s National Enterprise Credit Information Publicity System at gsxt.gov.cn. If the number doesn’t match a real company, the license is fake.
名称 (Company Name). Should match the name on the PI, the bank account, and the Alibaba page. If these names don’t match — even slightly — you’re dealing with multiple entities. One of them is not the factory.
法定代表人 (Legal Representative). The person legally responsible for this company. Not the sales rep you’re talking to. If something goes wrong, this is the person you sue. Write down this name.
住所 (Registered Address). This is the most revealing field. Paste it into Google Maps. Satellite view. Is it an industrial zone with loading docks and factory buildings? Or is it a residential apartment, a virtual office, or a shopping mall? A factory in a residential building isn’t a factory.
经营范围 (Business Scope). The list of activities this company is legally allowed to do. This is where you find out if they’re a factory or a trading company. Look for these keywords:
- 生产 — production/manufacturing. This is what you want.
- 制造 — manufacturing. Also what you want.
- 加工 — processing. Good — they make things.
- 经销 — distribution. They sell things other people make.
- 销售 — sales. Same — they sell, don’t produce.
- 进出口 — import/export. They can export. This is fine — but only if 生产 or 制造 is also listed.
注册资本 (Registered Capital). The company’s stated capital. Ignore this number — it’s not verified. Anyone can write 10 million RMB. What matters is whether the company actually exists at the registered address.
成立日期 (Establishment Date). When the company was registered. A factory established in 2008 has survived 15+ years of Chinese business cycles. A factory established 6 months ago might be legitimate — but you need to verify more carefully.
The Three-Minute Check
- Copy the unified social credit code → paste into gsxt.gov.cn → verify the company exists
- Google Maps the registered address → verify it’s an industrial zone
- Scan the business scope for 生产 or 制造 → verify they’re a manufacturer
Three minutes. Three checks. Eliminates 80% of the trading companies posing as factories.
Red Flags
The company name doesn’t match the Alibaba page. Common excuse: “that’s our trading name.” Translation: they’re a trading company using a factory’s license.
The registered address is a virtual office. Many trading companies register at a cheap virtual office in Shanghai but operate from somewhere else. If the address is “Room 302, Building C, Virtual Business Park” — that’s a trading company.
The business scope doesn’t include production. If every entry says 销售 (sales) or 经销 (distribution) but nothing says 生产 or 制造 — you’re talking to a middleman.
They refuse to send the license. Walk. No exceptions.
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