Insights ·
Five checks before you wire money to a Chinese supplier
This is the first pass we run on every supplier report. All of it comes from public records, and none of it needs "inside contacts" - the hard part is knowing which column to read.
1. Is it still trading, and what is it actually called
The Unified Social Credit Code on the business licence is the only identifier that matters: check its check digit first, then look at whether the registration status is "in operation".
2. Court and enforcement records
Four different records get lumped together, and they do not mean the same thing:
| Record | What it means | Weight | What to ask |
|---|---|---|---|
| Judgment document | They were sued (outcome is separate) | Low | Amount, and whether it closed |
| Subject to enforcement | A live judgment is being collected | Medium | Being repaid? How much? |
| Dishonest debtor | Could pay and did not - the heaviest | High | Why they are on the list |
| Consumption restriction | Travel limits on the legal rep | Medium | Lifted yet? |
3. Keep it on paper
Half the value of a report is the conclusion. The other half is knowing when and where that conclusion came from.
Log the date and the source of every lookup, and keep a screenshot of the result page. Public records change: the same lookup three months later can tell a different story.