5 Red Flags to Watch Out for When Doing Chinese Company Check

If you are looking to expand your business and have been on the hunt for good-quality and cheap Chinese suppliers, there are a lot of factors that you have to prioritize. Firstly, it makes sense that you’d want to focus on the quality of the product and then the authenticity.

As you are in the process of finalizing a supplier, conducting a Chinese company checkup is always a good option. But, while the reports are in the process, what kind of red flags should you watch out for when verifying these suppliers?

To make the process easier, we have sorted out the top red flags that demand you look for a different supplier.

Lack of transparent communication

If the supplier is sporadic with their conversation and not invested in finalizing the deals, it is time to walk away. You don’t even need to do a Chinese company check to realize they are not worth the time at all. Reliable suppliers should be responsive and open to discussing various aspects of the business relationship and if that isn’t happening, it is time to take a step back.

Unverifiable business credentials

When conducting the vetting process, it makes sense that you’d want to verify the business credentials too. This is an absolute must and allows you to get access to consistent information without any compromise at all. Always check the legitimacy of the supplier’s credentials so you aren’t investing your money in vain.

Inadequate quality control measures

If you are conducting a China company check and it doesn’t stand out in terms of the product’s quality that warrants you to take a step back from making the deal. The last thing you want is to spend your money and be supplied with subpar-quality products. To be fair, it happens a lot more than you think, so it’s ideal that you remain aware and alert.

Unreasonable payment terms

Some fraudulent Chinese suppliers will ask you to pay all the money upfront and have very sketchy financial terms in the contracts. Despite the legitimacy, proceeding with such suppliers can be a headache for you in the long run. Also, if you find that the supplier isn’t using a secure payment gateway, that’s another sign that it’s not legit.

Drastic price discrepancies

Just because it’s cheap doesn’t mean it’s good. When conducting a Chinese company checkup, you have to double-check the price discrepancies. If the differences are too drastic when compared to the other suppliers, that’s a sign that you need to make better choices. Price disparity is normal among suppliers but if the one you are talking to is charging 1/10th of what others are charging, that’s a red flag.

Identifying some of these red flags is crucial when you are finalizing your deals with a Chinese supplier. Ideally, doing so enables you to save your money and also not compromise on the quality of the products that you end up purchasing in the end.