Of the 100 suppliers you find, maybe 20 are real
The real problem with "too much information" is not the quantity, it is that true and false are mixed together.
For the same keyword, five kinds of company come up:
| # | Who they are | What that means |
|---|---|---|
| 1 | A real factory | Has its own workshop |
| 2 | A trading company | No workshop; passes the order on |
| 3 | Factory + trading | Has its own workshop and also takes orders passed on by others |
| 4 | An empty shell | Has no stock either; looks for goods after taking the order |
| 5 | A fraud | Takes the money and does not ship |
These five look almost identical on a web page.
First, the conclusion: factory or trader, which is better?
It is not "the factory is always better".
| Factory | Trader (trading company) | |
|---|---|---|
| Price | Ex-works price | One layer added |
| MOQ | High | Can be lower (combining orders) |
| Category | Single | Multiple categories |
| Service | Production only | Can follow up, inspect and consolidate for you |
| If something goes wrong | You go to them directly | They go to the factory (one more layer) |
When to look for a factory: large volume, single category, cost control. When to look for a trader: small volume, several categories, and you want someone to run around for you.
⚠️ The key point: "trading company" is not a dirty word. Many trading companies are more reliable than factories — because they live on service.
Step one: three questions that separate "has a factory" from "has none"
Do not ask "are you a factory" — everyone says "yes".
Ask these three:
| # | What to ask | How a real factory answers | How a trading company answers |
|---|---|---|---|
| 1 | "How many people work in your workshop?" | Gives a specific number (30, 80) | Hesitates, or says "our factory is very big" |
| 2 | "What model is this machine?" (pointing at a key piece of equipment) | Gives the model and tonnage | "I will have to ask about that" |
| 3 | "Can you take a photo of the whole workshop?" | Takes it at once (or says "we are working now, I will send you one") | Stalls, or sends a photo from the internet |
The first question works best: a real factory's people know how many people are in their workshop (they have to manage them); a trading company's people do not.
Step two: look at the "width of the product line"
A probability test.
| Product line | What it means |
|---|---|
| Narrow (3–10 models, one category) | Most likely a factory (good at one thing) |
| Wide (hundreds of SKUs, several categories) | Most likely a trading company (sells everything) |
Why: a factory's lines are fixed — it can only make what its lines can make; a trading company has no lines and can sell anything.
⚠️ The exception: a large factory can also have a wide product line (it has several lines). So this is a "probability test", not proof.
Step three: check "who it actually is"
Use the official tool, do not trust screenshots.
The National Enterprise Credit Information Publicity System (`gsxt.gov.cn`): this is the official system of the State Administration for Market Regulation, free to search.
Check three fields:
| What to check | What to look at |
|---|---|
| Business scope | Whether it says "production/manufacturing XXX" or only "sales XXX" |
| Registered address | Whether it is an industrial zone or an office building (factories are in industrial zones) |
| Operating status | Whether it shows "abnormal operations" or "seriously illegal and dishonest" |
The "business scope" field says the most:
- "Production, manufacturing XXX" ⇒ most likely has a factory
- Only "sales XXX" ⇒ most likely a trading company
⚠️ Two limits:
- Some factories' licences only say "sales" (production is done by an affiliated company) ⇒ cross-check
- Business scope is not the same as actual capability (a "manufacturing" licence can still outsource) ⇒ in the end you still have to look at the workshop
Step four: watch how it replies
The way someone replies carries their identity.
| Behaviour | What it means |
|---|---|
| Slow but specific (a few hours later, with parameters or drawings) | Most likely a factory (on the workshop floor, hard to reply) |
| Replies instantly, talks a lot, agrees to everything | Most likely a trading company (the salesperson is in an office) |
| Volunteers a low price, pushes you to order | Be careful (could be an empty shell or a fraud) |
| Refuses to give company details | Walk away |
⚠️ One counter-intuitive point: replying instantly is not an advantage. A real factory's salesperson runs between the workshop and the office; replying slowly is normal.
Step five: three red flags — stop when you see one
Three situations where you stop talking.
| Red flag | Why |
|---|---|
| The bank account name ≠ the contracting party | The money goes to someone else ⇒ no one to chase if things go wrong |
| Refuses a video tour of the factory | No factory, or a factory they cannot show |
| Demands 100% prepayment to a private account | The classic signature of a fraud |
The first one is the hardest rule: the account name must match the contracting party. If it does not match, do not pay, however reasonable the explanation.
If you do get scammed, who do you go to?
Official channels, free of charge.
| Channel | Use |
|---|---|
| The MOFCOM Complaint Service Centre for Chinese Enterprises' Overseas Business (12335) | Complaints about overseas business disputes (`12335.mofcom.gov.cn`) |
| Local police (report it) | Suspected fraud |
| China International Economic and Trade Arbitration Commission (CIETAC) | Arbitration agreed in the contract |
⚠️ An important fact: MOFCOM publishes warnings about fraudulent platforms (e.g. the 2025 statement on the "China Digital Trade" platform). Before signing, search the other party's name + "scam" or "complaint" — sometimes you find an official warning.
A "30-minute screening" routine
| Minute | What to do |
|---|---|
| 0–10 | Look at the width of the product line (narrow = factory, wide = trader) |
| 10–20 | Check `gsxt.gov.cn` (business scope + registered address + operating status) |
| 20–25 | Ask the three questions (how many people, equipment model, photo of the workshop) |
| 25–30 | Watch how they reply + check the three red flags |
Thirty minutes filters out most of them.
Finally: how do you judge "reliable"?
"Reliable" is not "is a factory"; it is these three things:
- Transparent information (willing to give the licence, film the workshop, describe the process)
- Specific answers (can state parameters, can state problems)
- Proper payment (account name matches the contract)
Meet all three and a factory or a trader can both work. Miss one and do not touch it, even if it is a factory.
Sources (2026-11-02)
| Item | Nature | Source | Date checked |
|---|---|---|---|
| National Enterprise Credit Information Publicity System (gsxt.gov.cn) | ✅ Official | State Administration for Market Regulation | 2026-11-02 |
| MOFCOM Complaint Service Centre for Overseas Business (12335) | ✅ Official | `12335.mofcom.gov.cn` | 2026-11-02 |
| MOFCOM publishes warnings about fraudulent platforms | ✅ Verifiable | mofcom.gov.cn (e.g. the 2025 "China Digital Trade" statement) | 2026-11-02 |
| CIETAC arbitration | ✅ Verifiable | China International Economic and Trade Arbitration Commission | 2026-11-02 |
| The three questions (headcount / equipment / workshop) | ⚠️ Experience | Common practice, no official standard | 2026-11-02 |
| The product-line width test | ⚠️ Probability test | There are exceptions (large factories with several lines) | 2026-11-02 |
| "Production" vs "sales" in the business scope | ⚠️ Indicative | Some factory licences list only sales | 2026-11-02 |
| The three red flags | ⚠️ Risk-control experience | No official standard | 2026-11-02 |
⚠️ This article does not name any specific company.
Before you pay a deposit, run the name through the official system and ask us to check it too → Request a quote