Illustrative model scenario
Factory or Trading Company: A 15-Supplier Teardown (Illustrative Model Scenario)
Illustrative model scenario — not a customer case, testimonial, supplier accusation, or real assessment. Figures and entities (including EXAMPLE-CPC-001: Guangdong Meridian Equipment Co., Ltd. and Harbor Link Trading Limited) are fictional examples showing how visible registry records and buyer-supplied transaction documents are compared before a wire transfer.
Factory or trading company, in one answer
Before wiring money to a Chinese supplier, buyers compare five visible things: the registered business scope on gsxt.gov.cn, capital figures in its annual reports, enforcement and judgment records on the court registries, the proforma invoice issuer, and the payment beneficiary. Any mismatch is a reason to pause and ask.
In short, whether a supplier is a factory or a trading company is read from five visible records (business scope, annual-report capital, court records, invoice issuer and payment beneficiary), and any mismatch is a reason to pause and ask before you wire money.
Step 1 (model): fifteen suppliers, four registries
In the model, a buyer shortlists fifteen suppliers from B2B marketplaces for a 3,000-unit appliance order and, before any deposit, looks each one up by Chinese legal name or 18-digit USCC on gsxt.gov.cn. The business scope (经营范围) is read first. When it lists wholesale, retail and import-export terms without 生产 (production) or 制造 (manufacturing), that is a visible indicator and an open question, not proof: the company may be a trading company, or it may subcontract. The right response is to ask who manufactures the goods and to obtain that factory's name and USCC. Paid-in capital comes from the annual reports on the same registry; enforcement and judgment records from zxgk.court.gov.cn and wenshu.court.gov.cn.
| Supplier (fictional) | Business scope terms seen on gsxt.gov.cn | Paid-in capital (annual report) | zxgk.court.gov.cn / wenshu.court.gov.cn | Visible indicator |
|---|---|---|---|---|
| S-01 | 批发、零售、货物进出口 (wholesale, retail, import-export); no 生产 / 制造 | Not read (scope question first) | Not read | Open question: who manufactures the goods? Ask for the factory's name and USCC |
| S-02 | 批发、零售、货物进出口 (wholesale, retail, import-export); no 生产 / 制造 | Not read (scope question first) | Not read | Open question: who manufactures the goods? Ask for the factory's name and USCC |
| S-03 | 批发、零售、货物进出口 (wholesale, retail, import-export); no 生产 / 制造 | Not read (scope question first) | Not read | Open question: who manufactures the goods? Ask for the factory's name and USCC |
| S-04 | 批发、零售、货物进出口 (wholesale, retail, import-export); no 生产 / 制造 | Not read (scope question first) | Not read | Open question: who manufactures the goods? Ask for the factory's name and USCC |
| S-05 | 批发、零售、货物进出口 (wholesale, retail, import-export); no 生产 / 制造 | Not read (scope question first) | Not read | Open question: who manufactures the goods? Ask for the factory's name and USCC |
| S-06 | 批发、零售、货物进出口 (wholesale, retail, import-export); no 生产 / 制造 | Not read (scope question first) | Not read | Open question: who manufactures the goods? Ask for the factory's name and USCC |
| S-07 | 批发、零售、货物进出口 (wholesale, retail, import-export); no 生产 / 制造 | Not read (scope question first) | Not read | Open question: who manufactures the goods? Ask for the factory's name and USCC |
| S-08 | 批发、零售、货物进出口 (wholesale, retail, import-export); no 生产 / 制造 | Not read (scope question first) | Not read | Open question: who manufactures the goods? Ask for the factory's name and USCC |
| S-09 | 批发、零售、货物进出口 (wholesale, retail, import-export); no 生产 / 制造 | Not read (scope question first) | Not read | Open question: who manufactures the goods? Ask for the factory's name and USCC |
| S-10 | 批发、零售、货物进出口 (wholesale, retail, import-export); no 生产 / 制造 | Not read (scope question first) | Not read | Open question: who manufactures the goods? Ask for the factory's name and USCC |
| S-11 | 批发、零售、货物进出口 (wholesale, retail, import-export); no 生产 / 制造 | Not read (scope question first) | Not read | Open question: who manufactures the goods? Ask for the factory's name and USCC |
| S-12 | Includes 生产 / 制造 (manufacturing) | 0 RMB paid-in in the latest annual report | An enforcement record found (illustrative) | Open question: capacity and solvency; ask about the record before any deposit |
| S-13 | Includes 生产 / 制造 (manufacturing) | 0 RMB paid-in in the latest annual report | An enforcement record found (illustrative) | Open question: capacity and solvency; ask about the record before any deposit |
| S-14 | Includes 生产 / 制造 (manufacturing) | Paid-in capital reported | No record found on the review date | Consistent with a manufacturer; capability still needs a visit, video audit or inspection |
| S-15 | Includes 生产 / 制造 (manufacturing) | Paid-in capital reported | No record found on the review date | Consistent with a manufacturer; capability still needs a visit, video audit or inspection |
Result in the model: eleven scopes without manufacturing terms, two manufacturers with zero paid-in capital and an enforcement record, two manufacturers with no visible issue. The numbers are chosen to illustrate the method; they are not statistics.
Step 2 (model): the four-way check on the selected supplier
The shortlisted manufacturer is then read the way every ChinaPayCheck file is read, using the illustrative parties of EXAMPLE-CPC-001. Third parties cannot view who owns a bank account; what can be checked is whether the proposed payment beneficiary aligns with the supplier entity and the proforma invoice issuer, or presents an undocumented third-party mismatch.
Four-way check on the selected supplier (EXAMPLE-CPC-001 roles)
Anchored on the illustrative file EXAMPLE-CPC-001: Guangdong Meridian Equipment Co., Ltd. and Harbor Link Trading Limited are fictional names used only to show the report format. No real company or customer is described. Status column = the finding in EXAMPLE-CPC-001.
| Evidence point | Supplier (as presented) | PI / invoice issuer | Payment beneficiary | Official record check | Status in EXAMPLE-CPC-001 |
|---|---|---|---|---|---|
| Chinese legal name and 18-digit USCC | Guangdong Meridian Equipment Co., Ltd. | Same on the PI | Different company | gsxt.gov.cn record resolves to one entity | ALIGNED |
| Legal name | Guangdong Meridian Equipment Co., Ltd. | Guangdong Meridian Equipment Co., Ltd. | Harbor Link Trading Limited | Mainland entity found by legal name and USCC; the recipient is a different company | MISMATCH |
| Bank jurisdiction | Mainland China | Mainland bank on the PI | Hong Kong account | A change of jurisdiction needs a written reason from the registered supplier | OPEN QUESTION |
| Written relationship evidence | None shown | PI names no collector | No authorization naming it | An agency or collection agreement should exist in writing | OPEN QUESTION |
Step 3 (model): what a quote in RMB changes in the landed cost
Suppliers quoting overseas buyers in USD often include a currency buffer; a trading company adds its margin. The table applies assumed figures to the same 3,000-unit order to show how the lines move. It is a hypothetical comparison, not a measured outcome, and the inspection is a third-party service the buyer books and pays for. Buyers who compare several factories keep the quotes, the entity checks and the pre-payment reviews side by side in the ChinaPayCheck workspace (Free USD 0, Starter USD 20, Growth USD 100, Pro USD 200 per month).
| Cost line | Marketplace trading company, quoted in USD | Factory B, quoted in RMB | Factory A, quoted in RMB (selected in the model) |
|---|---|---|---|
| Ex-factory unit price (RMB) | not disclosed | ¥51.75 | ¥48.30 |
| Unit price in USD at 6.90 | USD 9.20 | USD 7.50 | USD 7.00 |
| Merchandise, 3,000 units | USD 27,600 | USD 22,500 | USD 21,000 |
| Sample and tooling | USD 300 | USD 200 | USD 150 |
| Domestic trucking to the port | USD 250 | USD 95 | USD 120 |
| Third-party pre-shipment inspection (AQL 2.5), paid by the buyer | USD 189 | USD 189 | USD 189 |
| ChinaPayCheck workspace, one month (Starter USD 20) | not used | USD 20 | USD 20 |
| Sea freight, customs and delivery (DDP) | USD 1,850 | USD 1,420 | USD 1,450 |
| Total landed cost (DDP) | USD 30,189 (USD 10.06 per unit) | USD 24,424 (USD 8.14 per unit) | USD 22,929 (USD 7.64 per unit) |
| Difference against the trading company | baseline | USD 5,765 less (19.1%) | USD 7,260 less (24.0%) |
Official registries used in the cross-check
All four registries are public and free. They need the exact Chinese legal name or the USCC, are in Chinese, and may show a captcha from abroad.
- National Enterprise Credit Information Publicity System (gsxt.gov.cn): the 18-digit Unified Social Credit Code (USCC), registration status, subscribed capital, business scope, annual reports and the abnormal-operations list.
- Supreme People's Court Enforcement Information Disclosure Network (zxgk.court.gov.cn): active enforcement orders and Dishonest Judgment Debtor records against the company or its legal representative.
- China Judgments Online (wenshu.court.gov.cn): published rulings in commercial contract disputes involving the entity.
- Certification and Accreditation Administration of China (cx.cnca.cn): whether an ISO or CCC certificate number shown by the supplier is valid and issued to that legal entity.
These registries are in Chinese and need the exact Chinese legal name or USCC; some show a captcha and load slowly from abroad. A Hong Kong or offshore company does not appear on gsxt.gov.cn; its record is in that jurisdiction's companies registry. ChinaPayCheck reports what the records show on the review date. It does not guarantee supplier safety, bank-account ownership, product quality, shipment, refund recovery or legal outcomes.
The eight collection pages this model draws on
Procurement FAQ
Is this teardown a real customer case?
No. It is an illustrative model scenario with fictional suppliers and assumed figures, built to show the method. It is not a testimonial, not an accusation against any company and not a real assessment.
Is the USD 49 Supplier Risk Snapshot required?
No. Free Triage comes first and costs nothing: one supplier, one payment decision, and the PI and beneficiary instruction you already have. The one-off USD 49 Supplier Risk Snapshot is offered only after Free Triage confirms that the case fits one Chinese supplier and one concrete pre-payment decision with enough visible documents. If it does not fit, we say so by email and nothing is charged.
How is the monthly membership different from the USD 49 review?
The memberships on app.chinapaycheck.com (Free USD 0, Starter USD 20, Growth USD 100, Pro USD 200 per month, cancel anytime, running to the end of the paid period) cover the ChinaPayCheck workspace software and ongoing China desk sourcing support. They are separate from payments for supplier goods, from shipping costs, and from the standalone USD 49 pre-payment Snapshot.
Related Illustrative Teardown Models: Changed Bank Account Before Balance Wire: 6-Point Teardown (Model Scenario) · 1688 Factory vs. Offshore Export Collector: 4-Way Teardown (Model Scenario)
Interactive Pre-Payment Document & Registry Format Checker
Test whether a supplier's 18-digit Unified Social Credit Code (USCC) passes the standard
GB 32100-2015 check-digit calculation, check whether the bank SWIFT code routes to
Mainland China (CN) or another jurisdiction (ISO 9362), and compare your
Proforma Invoice (PI) issuer against the proposed payment beneficiary before submitting a Free Triage file.
For a valid code it also reads the registration type (company, individually-owned business or other) and the province
of the registering authority from the code itself.
(Client-side pre-check: an instant format and check-digit test, the GB 32100-2015 18-character USCC checksum and the ISO 9362 SWIFT country code characters, run in your browser only. It does not query government registries directly from this page and does not verify live registry status, account ownership, or supplier safety.)
Send These Details to Free Triage ($0) → Free Triage confirms whether your case fits one supplier and one pre-payment decision before any paid review or monthly workspace plan. The details stay in this browser until you submit the form.
Chinese Business License & Annual Report Field-by-Field Verification Map
When checking a supplier record on the official National Enterprise Credit Information Publicity System (gsxt.gov.cn), each Chinese field answers a specific commercial question and leaves distinct open questions that require transaction documents to close:
| Chinese Registry Field (gsxt.gov.cn) | English Meaning & Standard | What Visible Alignment Shows | Open Question It Does Not Close Alone |
|---|---|---|---|
统一社会信用代码 |
18-Digit Unified Social Credit Code (GB 32100-2015) |
Provides the unique statutory anchor for the mainland entity across business, court, and certificate portals. | Does not prove that the person emailing you works for this registered company. |
企业名称 |
Registered Chinese Legal Name | Identifies the exact legal entity name that should appear on the official red company chop (gongzhang). | English trade names on B2B profiles or invoices can differ unless linked by written records. |
法定代表人 |
Registered Legal Representative | Identifies the natural person recorded as the statutory representative of the company. | Does not confirm whether a sales representative or third-party agent is authorized to change payment routing. |
注册资本 / 实缴资本 |
Subscribed vs. Paid-In Capital (Annual Report) | Shows committed capital versus capital actually contributed as disclosed in annual filings. | Subscribed capital alone does not establish current cash flow, solvency, or factory equipment ownership. |
经营范围 |
Registered Business Scope | Shows whether permitted activities include manufacturing/processing (生产 / 制造 / 加工) or wholesale/trade only (批发 / 零售 / 货物进出口). |
A trading scope indicates a non-manufacturing entity or separate sales company; written evidence is needed if the seller claims an affiliated plant produces the goods. |
企业年报 — 社保信息 |
Annual Report Social Insurance Headcount (城镇职工基本养老保险) |
Discloses the number of employees enrolled in urban employee pension insurance in the latest annual report (a company may choose not to publish this figure). | A disclosed headcount of 0 or 1–2 employees alongside claims of a large factory is an open question to clarify before payment. |
Work with a China sourcing agent
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