When sourcing from China, many importers believe they’re dealing directly with manufacturers.
But in reality, a large portion of suppliers online are trading companies — middlemen who source from factories and resell at a markup.
There’s nothing wrong with working with a good trading company, but if your goal is to control quality, reduce costs, and manage production directly, you need to make sure you’re talking to a real factory.
Here are five proven ways to identify them 👇
1️⃣ Check the Business License
Ask the supplier for their business license (营业执照) and review the “Scope of Business.”
- Real factories include keywords like manufacturing, production, or processing.
- Trading companies include sales, import/export, or wholesale.
📌 Tip: A genuine manufacturer’s business license will clearly list production-related activities.
2️⃣ Verify the Location and Facilities
Factories are usually located in industrial zones — not city office buildings.
Ask for photos or videos of their production site:
- Workers on the production line
- Machinery and assembly areas
- Packaging or QC sections
If they hesitate or only show stock photos, that’s a red flag.
3️⃣ Review Their Product Range
Real manufacturers focus on a narrow product line — usually within one category.
Trading companies tend to offer a wide variety of unrelated items (for example: power tools, hair dryers, and kitchen blenders in one catalog).
A focused product range usually means they own the production.
4️⃣ Evaluate Their Production Capability
Ask these questions:
- What’s your monthly output?
- How many workers and machines do you have?
- Do you provide mold development or OEM customization?
- What testing certificates do you hold?
Factories can provide concrete answers and photos.
Trading companies often say, “We’ll check with the factory.”
5️⃣ Confirm with a Local Partner
If you’re not in China, work with a local sourcing agent or factory audit service.
They can:
- Visit the site in person
- Verify the factory’s existence
- Confirm machinery and workforce
- Report production capability
A short on-site visit often saves thousands in risk and miscommunication.
✅ Final Thoughts
Both manufacturers and trading companies can play important roles in the supply chain.
But if your goal is long-term cooperation, stable pricing, and quality consistency, verifying your supplier as a real factory is essential.
At ChinaBuy Sourcing, we help global buyers:
- Identify real manufacturers
- Compare quotations
- Manage sampling and production
- Conduct on-site inspections
So your sourcing from China becomes simple, safe, and reliable.
📩 Need Help Verifying a Supplier?
Our sourcing specialists can help you confirm whether a supplier is a real factory — within 24 hours.
Contact us or email support@chinabuysourcing.com to get started.
