7 ways to spot a fake "factory" in China — things a trading company can't fake (from someone who reads the Chinese paperwork)
Every week someone here loses money to a "factory" that turns out to be a trading company or worse, a straight-up scammer. Most vetting advice online is surface-level (ask for a video call, check reviews) — and those are the easiest things to fake. Here's a deeper checklist. Some of these only work if you (or someone you trust) can read Chinese, which is kind of the point.
1. Read the business license (营业执照) — specifically the "business scope" line.
Every registered Chinese company has one. The "scope of operations" (经营范围) literally lists what they're legally set up to do — "manufacturing" vs "wholesale/trade" are different words. A trading company's scope will say trade/sales, not production. Ask for the license, then actually read that line.
2. Cross-check the registered address on a Chinese map.
Drop the registered address into Baidu Maps (Google Maps is thin inside China). A real factory sits in an industrial zone with a plausible footprint. If the "factory" address is an apartment block or a tiny office park, that's your answer.
3. Ask a spec question only a real maker can answer instantly.
For that water bottle: "What's your wall thickness tolerance, and what's your reject rate on vacuum-seal testing?" A factory rattles off numbers. A trading company goes quiet, or says "I'll check with the factory" — congratulations, you just found the middleman.
4. Match the utility bill to the production claim.
A real factory has an electricity bill that scales with output. Asking for it feels odd, but it filters out a huge share of fakes that pass paperwork checks. Trading companies can't produce one that matches "we make 50,000 units a month."
5. Check the VAT invoice (增值税发票) situation.
Real manufacturers issue proper VAT invoices and can talk about export rebates without flinching. Vagueness here is a flag.
6. Watch how they behave when you mention a third-party inspection.
Say you'll send an inspector to their site. A real factory says "sure, here's the address and a contact." Hesitation, excuses, or "let's do a video call instead" = walk away. On-site audits check raw material logs, headcount, and internal QC — things a staged video-walk-through can't.
7. Never wire money to a personal account or an "agent" who only talks on WhatsApp/IG.
Payment should go to the company account matching the business license name. DM-only + upfront payment + no verifiable address is the classic burn combo. Trade Assurance / escrow exists for a reason.
None of this is paranoia — it's just the checklist that separates people who get burned from people who don't. Add yours in the comments if I missed any.