Due-diligence guide
How to verify a Chinese steel supplier before you pay
Wondering “is this Chinese steel supplier legit?” The answer comes from a few concrete checks — business license, company registration, factory verification, and a background and blacklist search — done before any money moves. Here is exactly how to run each one.
Checking a supplier before you pay
Work through the five verification steps below, then run our scored checklist to turn the answers into a clear go / no-go before you send a deposit.
Run the verification checklistAlready suspicious about a supplier
Search the company against documented scam patterns and importer reports, and if something is wrong, flag it so others are warned.
Search the scam libraryVerification is the one step that prevents most scams
Almost every China steel supplier scam — the phantom factory, the deposit that disappears, the bank account that doesn’t match — is caught by proper due diligence before payment. A Chinese company legitimacy check is not one lookup but a short sequence: confirm the business license, check the company registration, verify the factory, and run a background and blacklist search.
None of this requires you to be in China. The registries are public and the checks below can be done from your desk in an afternoon — far cheaper than a lost deposit. If you only have time for one thing, verify that the business license, the company you’re talking to, and the bank account are all the same legal entity.
How to check a Chinese steel supplier in five steps
Run these in order before any money moves. Each step narrows the gap between what a supplier claims and what you can actually confirm.
1. Check the business license
Ask for the supplier's Chinese business license (营业执照) and read the 18-digit Unified Social Credit Code from it. The registered company name, legal representative, registered capital, and approved business scope must match what the salesperson tells you. A trading company whose scope is “wholesale” cannot be the mill it claims to be.
2. Confirm company registration
Cross-check that credit code against China's official registries — the National Enterprise Credit Information Publicity System (GSXT) or commercial tools like QCC / Tianyancha. Confirm the company is active (not revoked or in abnormal-operation status), how long it has traded, and whether the address is real.
3. Run a background check
Look for lawsuits, enforcement records, and administrative penalties tied to the company, and search the name plus “scam / fraud / 骗子” in both English and Chinese. Check how long the domain and email have existed — a brand-new domain on a large “established” mill is a warning sign.
4. Verify the factory
For anything material, use a factory verification service or a third-party inspection (SGS, BV, TÜV, or a local agent) to confirm the plant, production line, and capacity physically exist. Insist on a live video walk-through of the line and warehouse, not just stock photos.
5. Match the bank account
The beneficiary on the proforma invoice must be the registered company, in China, in the same name as the license. A personal account, a Hong Kong or offshore account, or a name that doesn't match is one of the strongest predictors of a non-delivery scam.
Free ways to verify a China business license and registration
You can confirm most of a company’s legitimacy at no cost using these public and commercial sources.
Unified Social Credit Code
The 18-character code on the business license is your master key — every official and commercial registry search starts from it.
GSXT (official registry)
China's government enterprise-credit system lists registration status, legal representative, and abnormal-operation flags for free.
QCC / Tianyancha
Commercial databases that surface lawsuits, shareholders, branches, and trading history in a more readable form.
Domain & email age
A WHOIS lookup shows when the domain was registered; a mill that has “traded since 2005” on a domain from last quarter is suspect.
Signs of a fake Chinese company
Any one of these should stop a payment until it is fully explained and verified.
- Company name on the quote doesn't match the name on the business license or bank account.
- Registered capital is tiny, or the company was registered only months ago but claims decades of experience.
- Business scope on the license doesn't include steel manufacturing or trading.
- Only free email (Gmail/163/QQ) and a mobile number — no verifiable landline or registered domain.
- Refuses a video factory tour, third-party inspection, or to put its credit code in writing.
- Pushes for a fast deposit to a personal or offshore account before you can complete checks.
Check the supplier against known scam patterns
Part of any background check is searching a scam database and blacklist. These documented patterns are exactly what verification is designed to catch — each links to a full breakdown.
Turn these checks into a go / no-go decision
Our verification tool scores a supplier across exactly these dimensions — license, registration, factory, payment terms, and history — so you get a clear risk rating before you commit funds.
Verifying a Chinese steel supplier: frequently asked questions
How do I know if a Chinese steel supplier is legit?
Start with the business license: get the 18-digit Unified Social Credit Code and confirm the registered name, legal representative, and business scope match what you've been told. Then check that code against China's official GSXT registry (or QCC/Tianyancha) to confirm the company is active and has genuine trading history, verify the factory with a third-party inspection for larger orders, and make sure the bank account is a corporate account in the exact registered name. A supplier that passes all four is very likely legitimate; failing any one is a reason to pause before paying.
How can I verify a company in China before payment?
Do it in this order, before any money moves: (1) obtain the business license and credit code, (2) confirm registration and status on GSXT or a commercial database, (3) run a background check for lawsuits and fraud mentions, (4) verify the factory by video or third-party inspection, and (5) confirm the corporate bank account matches the license. Our verification checklist walks you through scoring each of these.
How do I check a Chinese business license?
A genuine license shows the company's registered name in Chinese, the 18-digit Unified Social Credit Code, the legal representative, registered capital, establishment date, and approved business scope. Read those details off the license and cross-check the credit code on the GSXT system. Be wary if the supplier only sends a low-resolution image, the name differs from the quote or bank account, or the business scope doesn't cover steel.
Is there a Chinese supplier scam database or blacklist I can check?
Yes — our scam library documents the recurring fraud patterns and the operators behind them, and our report tool builds a public record of suppliers other importers have flagged. Search the company name there, and also search the name plus “scam” or “fraud” in both English and Chinese. No blacklist is exhaustive, so treat a clean result as necessary but not sufficient — still complete the full verification.
What is a China factory verification service and do I need one?
It's a third-party check — by an inspection firm like SGS/BV/TÜV or a trusted local agent — that physically confirms the factory, production line, and capacity exist and match the supplier's claims. For sample or low-value orders a documentary check may be enough, but for any significant tonnage a factory verification or pre-shipment inspection is the single most effective defense against a phantom-factory scam.