Does the supplier really exist?

The risk: fake suppliers & trading companies

Chinese B2B platforms such as Alibaba, Made-in-China, or Global Sources list thousands of suppliers. What most EU importers don't realize: a substantial share are pure trading companies — or simply non-existent shell firms. They post stock photos, copy certificates from real manufacturers, collect down payments, and disappear before the trail leads through Hong Kong or chinese payment intermediaries.

The EU early-warning system Safety Gate (formerly RAPEX) has documented countless cases where importers fell for suppliers unreachable after delivery. Germany's BAFA and Austrian foreign trade offices issue regular warnings on Chinese supplier identity fraud.

How we verify — the 5-point check

1. Unified Social Credit Code (USCC)

Every legally registered Chinese company has an 18-digit Unified Social Credit Code (统一社会信用代码). This can be checked against the official registry at National Enterprise Credit Information Publicity System (gsxt.gov.cn). We verify: does the company exist? Who are the directors? Does the registered industry match the product? What is the registered capital? Is the company still active (not deregistered)?

2. Business license (营业执照)

The Chinese business license is mandatory and must be displayed visibly in the office. It states: company name (Chinese and English), legal form, registered address, founding date, business scope, legal representative. We inspect the original and cross-check with the public registry.

3. Address on-site

An address on Google Maps or Baidu means little. We physically visit the address in Chengdu, Shenzhen, Yiwu — wherever the supplier claims to sit. The result in many cases: empty hall, rented representative address, or just a coworking desk. With real manufacturers, we find: ongoing production, staff, machinery, warehouses, clear signage.

4. Bank account verification

A legitimate Chinese company holds its account in the company name (not a personal name, not in Hong Kong, not via a "trading" subsidiary). We cross-check the bank details against the business license and flag any discrepancies.

5. Customs and export history

Real manufacturers with EU business have a documented export history. Using Chinese customs statistics services (e.g., General Administration of Customs of China) and third-party databases (Panjiva, ImportGenius), we verify: who has shipped to whom? Which HS codes? What volumes? Does this match the supplier's claims?

Consequences if ignored

• Total loss of down payment — typically 30% of order value. On a €60,000 container order, that's €18,000+ with no chance of recovery.
• No legal recourse — Chinese courts require a concrete defendant with a verified address. If the company doesn't exist, there's no one to sue.
• Reputational risk — substandard goods with forged certificates can lead to a marketing ban by EU market surveillance (see EU Market Surveillance).
• Insurance refusal — transport and trade credit insurers require verified supplier data. Without it, coverage is void.

Sources & further reading

• National Enterprise Credit Information Publicity System — official Chinese company registry
• EU Safety Gate (Rapid Alert System) — RAPEX alerts on unsafe products
• General Administration of Customs of China — Chinese customs database
• WKO Foreign Trade — Austrian foreign-trade desk with China expertise
• Germany Trade & Invest (GTAI) — China — German market-entry advisory