Find and shortlist
Use Alibaba, Global Sources, the Canton Fair and Yiwu for initial discovery, then shortlist 3–5 suppliers per product. Check business licence, years in business, product range, export history and reviews. A gold supplier badge is not a guarantee; verify the legal entity.
Verify the factory
Ask for the business licence, factory address, production lines, QC process and recent export documents. Use a third-party inspection or a local agent for a video/on-site audit. Be wary of trading companies pretending to be factories; ask who actually owns the machines.
Samples, payment and QC
Order paid samples and test them against your spec. Agree on materials, tolerances, packaging, lead time and inspection standard. Use a written PO, pay a deposit through a traceable channel, and keep the balance against inspection. Avoid paying 100% upfront to a personal account.
Reality check
The cheapest quote usually has a hidden cost in quality or shipping.
Local tip: Order a paid sample and inspect before the balance.
Step by step
- Define product spec and target price.
- Shortlist 3–5 suppliers.
- Verify licence/factory.
- Order and test samples.
- Negotiate PO/payment/inspection.
- Inspect before balance; plan shipping.
Typical costs
| Item | Cost / note |
|---|---|
| Samples | US$20–200 |
| Third-party inspection | US$100–300 |
| Deposit | 30% typical |
| Shipping | Varies |
Prices are indicative and change. Confirm with the official provider before paying.
Documents to prepare
- Product spec
- Supplier business licence
- Proforma invoice/PO
- Inspection report
- Shipping documents
Common mistakes
- Paying 100% upfront
- No written spec
- Skipping inspection
- Using a personal account
- Ignoring packaging/logistics
If things go wrong
- If the sample is wrong, stop and renegotiate the spec.
- If the factory refuses inspection, walk away.
FAQ
Is Alibaba safe?
It is a marketplace, not a guarantee. Verify the company, use Trade Assurance where available, and inspect before paying the balance.
Should I visit the factory?
For significant orders, yes, or use a trusted inspection agent. Video tours help but can be staged.
Business in China: the field guide
Business travel is still travel: visas, payments and logistics come first. The commercial basics are verification, written terms and patience with process.
Visa and status
Meetings and trade fairs usually require an M/F visa; employment requires a Z visa and work permit. Do not work or get paid on a tourist visa. Keep the invitation letter, itinerary and host company details consistent. If you plan to set up a company, check the negative list and registered-capital rules before you commit.
Verify before you pay
Check the supplier’s business licence, factory address and export history. Order paid samples, agree a written spec and inspect before paying the balance. Avoid paying 100% upfront to a personal account. Use traceable bank channels and keep contracts, invoices and inspection reports.
Tax and invoicing
China uses VAT and official fapiao invoices. Fake fapiao is a criminal risk, not a paperwork shortcut. Cross-border payments may attract withholding tax, and related-party transactions need documentation. Use a local accountant before your first invoice or hire.
Quick checks
- Correct visa for the activity
- Supplier licence and factory verified
- Written PO/spec and inspection plan
- Traceable payment channel
- Local accountant/tax registration arranged
Printable checklist
Print this page or save it as a PDF. Tick each item before you go.
- Product spec
- Supplier business licence
- Proforma invoice/PO
- Inspection report
- Shipping documents
- Define product spec and target price.
- Shortlist 3–5 suppliers.
- Verify licence/factory.
- Order and test samples.
- Negotiate PO/payment/inspection.
- Inspect before balance; plan shipping.
This guide is a practical summary, not an official or legal document. Rules and prices change. Use the official links below, and confirm with the relevant authority or a qualified professional.
Last verified 2026-10-29. China Handbook is independent and not affiliated with any government. Information is provided for general guidance only.