How to avoid supplier scams

Question

How can foreign buyers avoid supplier scams in China?

Answer

Avoid scams by verifying company identity, using samples and trial orders, secure payment methods, and working with established local partners.

Steps

1. Verify business license and export history.
2. Never pay 100% upfront to new suppliers.
3. Use video calls and factory verification.
4. Start with small trial orders.
5. Use contracts that define quality and delivery terms.

Common mistakes

• Trusting prices far below market average.
• Skipping due diligence on new contacts.
• Sending money to personal bank accounts.