Every businessperson that works with foreign companies wants their partners to be reliable. This can mean several things like products shipped on time, quality of the product being up to standards and payments arriving on time. Usually, when an importer finds a new supplier in China, they do two things.
First, they check the quality of the product. They can go to China and see the product with their own eyes.
They can then take a test batch or hire a unique quality control company. The second approach is to check the actual factory where the goods are to be manufactured.
Again, you can go to China and see the factory with your own eyes; you can hire a QC specialist to do this on your behalf or arrange a virtual tour.
It is also common to check factory documents like licenses, import-export permission, and certificates during this step. Most people understand these two practices, and almost everybody does them.
A third approach can significantly help to analyze reliability and reduce risk. Let us imagine a situation when the factory can produce the desired quality products, but some crucial part of the factory’s equipment has been pledged, and they cannot pay off the loan, then manufacture stops.
Another critical situation is if the supplier is going through litigation related to the low quality of products and delivery time.
So, how can you verify that this supplier is safe to work with? There are many sources of information that will allow you to dig deeper.
You can use several essential government data sources in China:
1. National Enterprise Credit Information Publicity System, e.g.
Source:- www.gsxt.gov.cn
2. Another vital source of information are Chinese courts:
National and Local Judgement Document Network
Source:-wenshu.court.gov.cn
3. Some commercial services aggregate information from open government and other commercial sources. Like:
Source:-tianyancha.cn
Source:- Or qcc.com
4. An alternative is to use services which provide similar information in English.
When working with such services, you can enter the name of a company in Chinese or its United Social Credit Code and get detailed information. You can usually find data on any legal entity in China.
The main difficulty with such services is that all of the information is available in Chinese only. An option is to use a service like companyinspector.com because it provides a similar word in English.
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