Keywords: China supplier background checks | Chinese company credit checks | supplier due diligence | China purchasing contracts
Illustrative scenario
A roughly US$1 million equipment order is about to be signed, and the supplier is pressing for a US$300,000 advance. The overseas buyer has received the business licence and factory photographs but notices that the contracting company, factory and payment account have different names. Who receives the money, and who must deliver?
How a China lawyer can assist
A client can engage us to examine the counterparty’s registration, ownership, and publicly available judicial and enforcement records under Chinese law. We assess credit and performance risks in light of the scope and currency of the information available.
Note: Unpaid registered capital, litigation or related-party connections do not by themselves establish that a company cannot perform.
Our services can include reviewing the contracting entity, signatory authority, company seal and receiving account; verifying the relationship between the manufacturer and the contractual obligor; proposing staged payments, acceptance, remedies and security; and reviewing dispute resolution arrangements. Where needed, we can coordinate qualified organizations for site visits, financial verification or technical inspection.
Before signing or paying, you may engage a China lawyer to provide a transaction risk analysis and legal advice based on the contract and available information.