How do I verify that a Chinese supplier is a legitimate factory and not a trading shell?

Several practical checks reduce the risk of paying a shell company: 1. **Business licence verification.** Ask for the supplier's Chinese business licence (营业执照) and check the registered scope of business, registered capital, and year of incorporation against public records (e.g. National Enterprise Credit Information Publicity System). 2. **Factory audit.** Commission an on-site audit through SGS, Bureau Veritas, TÜV, or Intertek. Audits cover production capacity, QC processes, and whether the address is an actual factory vs. a serviced office. 3. **Bank account name match.** The receiving bank account name must match the company name on the contract and business licence exactly. Mismatches are the single most common fraud signal. 4. **Pre-shipment inspection (PSI).** Even after the contract, require a third-party PSI before final balance payment so an independent inspector confirms goods exist and meet spec. 5. **References and trade history.** Ask for export records to your region. Many fraud cases involve suppliers with no real export history to Africa or the Middle East. Working through an established trader/aggregator like Allied Minmetal shifts this due-diligence burden away from the buyer - we vet mills directly and ship under our own letterhead. See [Trust & Compliance](/trust) for our process.