Do not lose your hard-earned capital to shell companies and fraudulent web listings. Learn how to verify state registries, detect fake websites, and audit bank details before wiring money.
For international B2B importers, wiring money to an unvetted partner is the single highest-risk moment in sourcing. While many suppliers are legitimate, hard-working manufacturers, scammers frequently build beautiful websites, buy Gold Supplier badges, and pose as elite factories to extract upfront deposits.
Spotting a fake Chinese supplier does not require expensive site visits. By auditing their regulatory registration, digital footprint, and bank beneficiary setup, you can detect scams from your computer. Below are the 7 warning signs you must check.
In China, setting up production facilities requires significant capital for leasing factory floors, acquiring heavy machinery, and securing environmental licenses.
Real manufacturing operations typically register with a capital of **at least 1,000,000 RMB** (approx. $150,000 USD). If your supplier’s business license shows a registered capital of only 30,000 or 50,000 RMB, they are either a small local shop, an intermediary broker, or a shell company. Check their business parameters via our China Business License Translation Guide.
Scam suppliers cannot afford to build long-term digital footprints because their websites are regularly reported and taken down.
Under Chinese law, any legitimate business operating a website must register for an **ICP (Internet Content Provider) License (ICP备案)** with the Ministry of Industry and Information Technology (MIIT).
Genuine companies display their ICP number (e.g. 京ICP备12345678号) in their site footer. If there is no ICP number, or if you search the official MIIT registry and find the domain is registered to an unrelated private individual, the website lacks corporate backing.
Scammers frequently steal factory videos or photos from Pinterest or other suppliers.
Ask your sales contact for a quick WeChat or Zoom video call from the assembly line. If they make excuses about "safety rules," "client confidentiality," or "power cuts," they are hiding their true broker status. Review our guide on remotely auditing a Chinese factory to inspect machines and nameplates on camera.
While not direct fraud, trading brokers frequently claim direct manufacturing status to mark up products.
Audit their SAMR state registry record. If their business scope contains only **"Sales" (销售)** or **"Trading" (贸易)** and lacks words like **"Production" (生产)** or **"Manufacturing" (制造)**, they do not own the factory. To separate these roles, check our guide on Factory vs Trading Company in China.
This is the ultimate check. If the bank beneficiary name on your Proforma Invoice (PI) is a personal account or does not match their Chinese business name character-for-character, do not send funds.
Contracts and invoices in China are only legally binding if they are stamped with the official corporate seal (Chop).
Genuine stamps are round, red, and contain the Chinese registered corporate name and a 13-digit police registry code. If the stamp has an English name only, is rectangular, or looks computer-generated with perfect pixel alignment, it is fake. You can learn how to check stamps in our Chinese Company Stamps Guide.
| Check Variable | Fake Supplier Signal | Legit Supplier Status |
|---|---|---|
| Domain WHOIS | Registered < 12 months ago | Registered 2+ years ago (matches license age) |
| ICP License | None, or registered to an individual | ICP matched perfectly to company Chinese name |
| Bank Account | Personal or offshore shell entity | Corporate bank matching Mainland license |
We bypass registry CAPTCHAs, query official Chinese state records, verify ICP registrations, and verify bank routing to help you spot scams before you wire funds.