Import from China: A Due-Diligence Checklist
Before you transfer a deposit to a Chinese supplier, take 10 minutes to run through this checklist. It can save you weeks of disputes and unexpected costs.
1. Verify the business license
Every Chinese company has a Unified Social Credit Code (USCC). Use it to confirm the company's legal status, registered capital, and business scope.
2. Check shareholding structure
Understand who owns the company and who the ultimate beneficial owner (UBO) is. A single person linked to many companies can be a red flag.
3. Identify the legal representative
The legal representative has signing authority. Make sure the person signing your contract is actually authorized to bind the company.
4. Look up court and enforcement records
Court cases, enforcement actions, and bankruptcy filings reveal how a company handles obligations. Even one recent case should change your payment terms.
5. Map the relationship network
Look at subsidiaries, suppliers, and customers. The network often reveals the true scale and reliability of the business.