Promised a factory, shown an office: checking a supplier in China

What to do when a Chinese supplier promises a factory tour but shows an office. Site visits, business licences and evidence-based checks.

An inspector arrives at the Chinese supplier's address before you transfer a sizeable deposit. The salesperson promised a factory tour, but the meeting takes place in an office. The production site, you are told, is another 90 minutes away. Should you immediately accuse the company of fraud—or accept the explanation and pay?

We have encountered this kind of situation in practice. Neither reaction is sensible without more evidence. The important steps are to document the difference between what was promised and what was seen, request access to the actual production site and establish which legal entity will take payment and fulfil the order.

What does supplier verification mean?

Verifying a Chinese supplier is a separate service carried out before a purchase or major prepayment. Its purpose is to establish whether the company exists, understand its role in the transaction, review available records and, where agreed, visit its office, factory or warehouse. The result is an evidence-based report, not a guarantee that nothing can go wrong.

MYRON TRADE arranges contact with the supplier, plans the visit and gathers material for the client. Depending on the agreed scope, an inspector may document the company name, entrance, staff, machinery, manufacturing areas, warehouse, finished goods and available corporate documents.

Three situations that need different conclusions

A real workshop is operating, but it buys many components. Some Chinese facilities perform final assembly rather than every manufacturing step. This is not necessarily a weakness. What matters is which operations occur on site and who controls the quality of purchased parts.

The seller and the factory are different legal entities. Your contact may be a trading company working with an independent manufacturing partner. An intermediary can be useful, particularly for small orders. However, the contract must make clear who receives payment, produces the goods, issues documents and handles claims.

You were promised a factory and shown an office. This happened in our practice. The inspector should record what was promised, what could actually be inspected, how the supplier explained the discrepancy and whether a proper factory visit can be scheduled. An office address alone does not establish fraud, but it does not prove production capacity either.

What each piece of evidence tells you

Ask who is authorised to sign, why payment is being requested by a particular company and whether the proposed export arrangements match the contract. A document belonging to a different business is a reason to investigate the transaction structure, not an excuse for an unsupported public accusation.

How to interpret lawsuits and public records

A company may appear in litigation records for many reasons. Look at the date, subject, procedural status and outcome; a single dispute does not automatically make a supplier untrustworthy. Equally, an empty search result does not demonstrate perfect compliance. Public databases have their own limits and may not show every relevant issue.

When to order an independent check

Verification is particularly helpful for a first transaction, custom-made goods, a significant deposit, inconsistent company names or reluctance to show a manufacturing site. If the goods already exist, you may also need a product quality inspection. Checking a company and testing a specific shipment answer different questions.

Send the supplier's Chinese registered name, address, contact details and your main concern. We can agree a targeted factory and company verification. If you have not selected a supplier, begin with manufacturer sourcing.