Sourcing Guard

Factory or Trading Company Checker

Answer the questions below using what you can verify — not what the salesperson told you. Each answer is weighted by how hard it is to fake. Tip: get the 18-character code first with the China business license checker.

  1. 1. Does the business scope (经营范围) on GSXT include 制造 / 生产 (manufacturing / production) of your product?

    Check with the license checker and GSXT.

  2. 2. Does the Chinese company name contain 机械 / 设备 / 制造 / 科技 rather than 贸易 / 进出口 / 国际贸易 / 供应链?

    贸易 (trading), 进出口 (import-export) and 供应链 (supply chain) names are almost always traders.

  3. 3. Is the registered address in an industrial zone / park (工业园, 开发区) rather than an office tower or residential building?

    Search the address on Baidu Maps or Google Earth.

  4. 4. Is the paid-in or registered capital above ~RMB 5 million?

    Visible on GSXT / Qichacha. Very small capital is typical of trading shells.

  5. 5. Did they do an unscheduled live video walk-through of a production floor where YOUR type of machine is being built?

    Ask them to point the camera at a machine nameplate and the company sign at the gate.

  6. 6. Is their product range focused on one machine family (e.g. only filling & capping)?

    Traders list dozens of unrelated categories.

  7. 7. Can you speak directly with an engineer who answers technical questions without long delays?

    Traders need to "check with the factory" for every technical detail.

  8. 8. Did they provide machine-specific drawings / layouts / electrical diagrams for your project?

    Generic brochures only = likely reseller.

  9. 9. Does the same legal entity hold patents or certifications (CE, ISO 9001) in its own name?

    Check the certificate holder name matches the license.

  10. 10. Is the bank beneficiary the same company as on the business license?

    A different company or Hong Kong account usually means a trader (or fraud).

  11. 11. Are they happy for you or a third party to audit the factory at the address on the license?

    Refusal or "the factory is a partner" is a strong trading signal.

  12. 12. If on Alibaba, does the profile show an onsite-verified factory with the SAME company name as the license?

    "Trading Company" or mismatched names on Alibaba is a giveaway. Answer "not sure" if not on Alibaba.

Why it matters for machinery buyers

For machinery, the builder controls design, spare parts, commissioning and warranty. If a trader disappears, you may have no relationship with the factory that can fix your line. Read the full guide: how to tell if a Chinese supplier is a factory or trading company, and estimate what verification costs with the factory audit cost estimator.

Need certainty before a big deposit?

A factory audit sends someone to the address on the license to confirm production, equipment and capacity. Get a quote, or start with a $99 document review.

Get a factory audit quote$99 Evidence Review

Frequently asked questions

How can I tell if a Chinese supplier is a factory or a trading company?

The strongest evidence is the business scope on the official GSXT record: manufacturers include 制造/生产 (manufacturing/production). Combine it with the registered address (industrial zone vs office), an unscheduled live video of your machine being built, and whether the bank beneficiary matches the license.

Is buying from a trading company always bad?

No. Good traders consolidate orders and handle export. The risks are a hidden margin, slower technical answers, and less control over quality and after-sales. The key is knowing who actually builds your machine and verifying that factory too.

Can a company be both a factory and a trader?

Yes. Many Chinese manufacturers run a separate import-export company to sell abroad. That is normal, but the relationship should be documented and the factory should be visible on video or during an audit.

Does Alibaba "Verified" mean it is a factory?

Not necessarily. Alibaba verification confirms some company information, but trading companies can also be verified. Check that the company name on Alibaba, the license and the bank beneficiary are the same.

More free supplier verification tools

China Business License Checker (USCC Validator)
Validate an 18-digit Unified Social Credit Code and decode who issued it, entity type and region.
Supplier Deposit Risk Calculator
See how much money is exposed before you wire a deposit, and a safer payment structure.
Factory Acceptance Test (FAT) Checklist Generator
Generate a printable FAT checklist for filling, capping, labeling, packaging, injection molding or CNC machines.
China Factory Audit Cost Estimator
Estimate what a background check, factory audit or inspection in China typically costs.
Free Supplier Risk Checker
Enter a supplier name and link to get a free public-footprint snapshot with red flags and questions to ask.

Results are educational estimates based on the information you enter and publicly documented standards. They are not a guarantee of any supplier's legitimacy. See our disclaimer.