Please note: This report does not contain company contact information. To obtain contact information, please click Company Contact & Verification Pack.
The importance of investigating Chinese suppliers or partners
“Trust in our supply chain starts with transparency. Verification is the foundation for that trust.”
“Knowing your supplier is not a luxury—it’s a business necessity.”
“Supplier verification is a core strategy to mitigate risk and ensure business continuity.”
Which companies are doing supply verification or background checks?
According to a McKinsey report, more than 70% of the Fortune 500 companies in the United States have a "third-party verification" or "compliance department" dedicated to evaluating the background of suppliers.
| Company | Report Importance | Verification Report Required | Core Use of the Report |
|---|---|---|---|
| Apple | Very High | Yes | Compliance, Legal Risk, Factory Verification |
| HP | High | Yes | Environmental Protection, Compliance, Company Credit |
| Walmart | Very High | Yes | Compliance, Legal Risk, Factory Verification |
| IKEA | High | Yes | Factory Verification, Compliance, Company Credit |
| Nestlé | High | Yes | Compliance, Company Credit, Legal Risk |
| Unilever | High | Yes | Compliance, Environmental Protection, Company Credit |
| Nike | High | Yes | Factory Verification, Legal Risk, Compliance |
| BASF | High | Yes | Compliance, Environmental Protection, Company Strength |
| General Motors | High | Yes | Legal Risk, Company Credit, Financial Strength |
| L’Oréal | Medium-High | Yes | Compliance, Environmental Protection, Company Credit |
Common Business Scams in China
Understanding common business fraud in China can help you spot red flags early. Some of the most prevalent scams include:
- Fake Suppliers and Manufacturers – Companies claiming to be manufacturers but are actually middlemen or don't exist at all.
- Shell Companies – Entities legally registered but with no actual business operations.
- Middlemen Posing as Factories – Agents masquerading as manufacturers and overcharging buyers.
- Trademark and Intellectual Property Theft – Fraudsters registering your brand trademark in China and demanding payment for its use.
- Investment Scams – False business opportunities designed to entice foreign investors to transfer funds.
- Company is about to close - will not be able to fulfill your order
- Company is involved in scams or has court cases/financial issues
- It is not a manufacturer, but a single-person trading company
To avoid becoming a victim of these scams, it is crucial to follow a Chinese Company Check process before conducting business with a Chinese company.
Third-Party Chinese Company Investigation Services
Our experienced experts and analysts at our China office collect authoritative information from various Chinese government departments and banks, compile it into a PDF file, and send it to you, And remind you of the risks in the body of the email.
Report Selection
If the transaction amount is small and it is a one-time transaction, please choose the Supplier Verification report.
If it is a large transaction or you plan to be a long-term partner with this company, please choose the Full Background Check report.
Pre-litigation Investigation report is our best-selling report and contains the most information.
