1. Identify the contracting company
Confirm the full Chinese legal name and Unified Social Credit Code of the company that will be responsible for the transaction. Do not rely only on a marketplace shop name, English brand or salesperson's email signature.
2. Verify current registration status
Review the entity's current registration information and compare its establishment date, address, representative and business scope with the supplier's claims. Record the date of your check because corporate information can change.
3. Match the quotation, invoice and contract
The company named on the quotation, pro forma invoice and contract should be identified clearly. If different entities appear, obtain a written explanation of their roles and relationship before payment.
4. Understand the payment beneficiary
Compare the beneficiary name with the contracting company. A request to pay an individual, an unrelated business or an account in another jurisdiction deserves careful review.
Alternative payment arrangements can have legitimate commercial reasons, but the supplier should explain them clearly and provide documentation that you can verify independently.
5. Independently confirm changed instructions
If bank details change, verify the change through a previously established communication channel. Do not rely only on the email that announced the new instructions. Business email compromise can make an authentic conversation appear to contain a genuine payment request.
6. Check commercial and public risk indicators
Consider the supplier's operating history, ownership information, significant corporate changes, public litigation and enforcement information, adverse reporting and consistency across its website and documents. No single indicator should be interpreted without context.
7. Match due diligence to transaction value
A small sample order and a major production deposit do not require the same level of review. For significant exposure, consider staged payments, independent inspection, enforceable written terms, professional contract review and verification of product or factory claims.