China is a massive manufacturing hub, but like any global market, scams can happen if you’re not careful. Fortunately, avoiding scams is easy when you follow structured verification steps.

1. Never Pay 100% Upfront

No real factory will ask for full payment before producing goods.
Standard payment terms are:

• 30% deposit

• 70% balance after inspection

If someone insists on full payment before production — run.

2. Verify the Company Registration

Request:

• Business license

• Unified Social Credit Code

• Registered capital

• Office & factory address

Cross-check this information on China’s government business registry.

3. Beware of Extremely Low Prices

If the price is 40–60% below market level, it is almost always a scam.
Quality costs money, and raw material prices are publicly known in China. Unrealistic pricing = risk.

4. Always Request a Video Call

Ask the supplier to:

• Walk around the workshop

• Show machines

• Show workers

• Show packaging area

Scammers cannot pass a live video factory tour.

5. Use a Third-Party Inspection

Before shipping, hire QC services:

• SGS

• TUV

• BV

• Your sourcing agent

A $100 inspection can save you thousands in inventory losses.

6. Avoid Western Union / Personal Accounts

Only pay through:

• Company bank account

• Alibaba Trade Assurance

• PayPal (for samples)

Never send money to personal accounts — that’s the biggest red flag.

With the right checks, you can avoid 99% of scams. China remains one of the safest and most efficient places for manufacturing — as long as you follow proper verification steps.