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    1. SeekingQuality is offline

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      #1

      Chinese Suppliers Verification - How to verify the legitimacy of Chinese wholesale businesses?

      I have a very small business located in the United States and very limited experience with Chinese companies. Therefore, I would prefer going to China to investigate companies.

      I have located a few companies in the United States that sell obsolete and newer electronic components. They have some of the parts I need but they want too much money. So, I want to stick with Chinese companies.

      I just need an official Chinese government website written in English to verify if a business is legitimate or not. Does the Chinese government have such a database? If not, why? And if not, how else can I verify officially that a business is real and not fake (by this I mean, it is registered with the Chinese government)?

      Also, there seem to be no reviews anywhere on the internet for the 2 companies.

      Do you have any idea?

      Thanks.
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    2. MissWholesale's Avatar
      MissWholesale is offline

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      #2
      Hello SeekingQuality,

      Welcome to Wholesale Forum

      The process of Chinese supplier verification can be a tricky and frustrating task. It is essential that you check that the supplier you are going to deal with is genuine and a direct source / manufacturer. The following are some useful tips for checking the legitimacy of a Chinese supplier:
      • Contact Details Verification
        Most scammers will not offer genuine registration information online, in order to avoid being caught by law enforcement authorities. They may provide a false company address, telephone number and a fax number. Many times, they persuade buyers to contact them via mobile phone only. Since there are no restrictions or limitations in mobile usage, scammers always prefer using mobile phone numbers instead of landline telephones. Normally, legitimate businesses use a land line telephone instead of a mobile phone.

        For example, in the following phone number 86 755 3333 3333, “86” is the China country code, “755” is the area code, and “3333 3333” is the telephone number. You can run some basic check of the location by verifying that the telephone number's “area code” corresponds to a geographic location in China, and that is therefore not a generic mobile area code.

      • Check Business License and Credit Status
        It is essential for legal companies in China to get registered with the Chinese Government authorities and acquire a unique company registration number i.e. ICP number. If the Chinese company does not display an ICP number on their website, then it is definitely risky to deal with them. You can verify the supplier by crosschecking the registration number in the Chinese government organization like Bureau of Industry & Commerce, which is responsible for the registration of legitimate companies and enterprises in China. Along with this, you can use third-party authentication service companies in China to verify the supplier information.

      • Low Prices for International Brands
        Usually, most of the Chinese scammers entice foreigners by offering very low prices for branded products. If you are skeptical about the prices offered by a supplier, you should investigate it further. You should ask questions and investigate why their prices are so low. Most Chinese scammers make a lot of profit by selling fake or counterfeit branded goods to overseas markets. Bear in mind that wholesale prices for authentic/original brands like Apple, Sony, Nokia, Dell etc. are almost the same anywhere in the globe. Most China based brand distributors in China are unauthorised by the brands and sell counterfeited goods.

      • Payment and Shipment Terms
        Scammers refuse L/C as a payment term. They prefer Western Union, T/T etc. They also avoid formal channels to deliver goods; instead they prefer Express by Fedex, TNT, EMS to avoid examinations by Chinese customs.

      • Chinese Wholesale Sourcing Sites
        China wholesale sourcing sites such as Global Sources and HKTDC list many manufacturers, agents, and wholesalers. To be a verified member of these B2B sourcing sites, suppliers are bound to pay a substantial fee. Most scammers will avoid paying this fee, therefore if a supplier on one of these sites is marked as verified, it denotes they might be legit (although beware that some fraudulent suppliers will pass their verification checks, plus verification is not an indication of the quality of the supplier's products or service). You should check each potential supplier further, to confirm their legitimacy.

      • Visit The Company Or Factory Personally
        The best way to verify a Chinese supplier is to visit the Chinese company or factory in person. You can't know everything there is to know about a company unless you visit them. Visiting them however can be a second stage of negotiation, firstly verify using the techniques mentioned above and if the supplier authenticates then you can think of visiting that particular company in person. You will receive many offers from several Chinese suppliers to visit their offices or factory, but it’s hardly possible for you to go to all factories one by one. You should narrow down your selection before making the trip.

      • Warranty and After Sale Services
        Scammers never guarantee quality and after-sale services. They may promise you a lot before payment, but you will hardly receive any of those services once you have made the payment. Order samples first, then contact the supplier claiming your sample is broken and evaluate their response.
      For more information about supplier verification see the following past discussions:To learn more about finding and verifying suppliers see:Hope this helps
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    3. www.csinprc.com is offline

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      #3

      Quote:

      Originally Posted by SeekingQuality View Post
      I have a very small business located in the United States and very limited experience with Chinese companies. Therefore, I would prefer going to China to investigate companies.

      I have located a few companies in the United States that sell obsolete and newer electronic components. They have some of the parts I need but they want too much money. So, I want to stick with Chinese companies.

      I just need an official Chinese government website written in English to verify if a business is legitimate or not. Does the Chinese government have such a database? If not, why? And if not, how else can I verify officially that a business is real and not fake (by this I mean, it is registered with the Chinese government)?

      Also, there seem to be no reviews anywhere on the internet for the 2 companies.

      Do you have any idea?

      Thanks.
      You can use a sourcing company to process your order. Because license and all stuff it might be fake which is registered by using a fake ID card. Believe me, I have been in China for more than 5 years and all stuff about license and payment just looks right on paper but in real life is all about nothing

    4. Dairo is offline

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      #4
      Brilliant advice from MissWholesale!

      I would like to emphasize that even a registered Gold Member or high ranking member in a B2B or B2C sourcing site may be a big scammer. The Gold membership of most China wholesale websites just cost 5k~30k China Yen per year, so many small companies and scammers invest this little money on that expecting to "catch big fish". We came across a Philipines importer being cheated by a Gold member of a famous sourcing site, the scammer is a registered chemical trading company in Hebei Province. They do business normally in domestic market but always cheat foreign buyers. There are many similar cases we have listed in our website.

      Moreover, even suppliers who you think are good may cheat by using downgrade materials. For example, a machinery manufacturer can change iron components from Grade A to Grade C and you never realize the overall lifetime of the machinery may decrease by 30%.

      However, it does not mean suppliers asking for T/T remittance or use delivery by Fedex/ DHL express must be scammers. If you work in Chinese exporting companies you will find most Chinese companies like T/T remittance because this is the most effective and fast way for them to declare income and get tax refund support from the Administration of Foreign Exchange. Foreigners never know the tax refund is super important for most Chinese exporting companies - some companies even quote prices with actually zero or minus profits because they can get 13~17% tax refund after the exportation. And so far as I know there are many products better to be shipped by courier such as DHL/ Fedex/ TNT instead of regular ocean or air cargo, for instance, solid state drives, semiconductor chips, capacitors, etc.

      Anyone who is interested to know more about buying from China can add me as a friend, and I am glad to share my experiences and knowledge.

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