How To Avoid China Manufacturing Frauds

How To Avoid China Manufacturing Frauds

Want to manufacture your products overseas? Here’s how to avoid China manufacturing frauds and make the best of your Chinese sourcing!

Finding the right manufacturer is a tough, time-consuming task. And that’s if you’re producing everything locally. When you decide to source your products from a different country - say, China, - the stakes get higher. So how exactly can you have a successful China manufacturing experience, without any fraud or scam risks? It’s not as complicated as it may seem. 

Why Choose China for Manufacturing?

“Manufacturing in China comes with a ton of benefits, but it posts some risks, too. Securing a manufacturer can be difficult and trying. After all, there are several Chinese scammers that pose as manufacturers simply to take your money and run.”
- Nathan Resnick, entrepreneur and CEO of Sourcify, written in an article written at XSellCo

Let’s get down to the wire. Manufacturing your products in China can be insanely lucrative. You get to buy goods for mere cents, and then sell them in your own country at a 1000% margin. Anyone who is serious about their business would jump at this opportunity. But the fact of the matter is, China has more than just the language barrier to overcome. 

And it’s just not about fraud. Poor product quality, long shipping times, and even unethical factory conditions are a few of the hurdles you’ll need to jump through in order to get a product that’s actually worth selling. 

Find Your Supplier

Finding the right supplier is your first step to success (and to avoid fraud in China manufacturing). But finding the right one might be a bigger challenge than what you were expecting. If you’re going to do this on your own, then we recommend making sure your supplier is the real deal in order to avoid scams when manufacturing in China. Check for their audited accounts, their  VAT (Value Added Tax) invoice, product samples, and checking the factory’s Chinese credentials (like location and local government office). To make things easier for you, we’ve also created an expert Chinese sourcing package that can help you get a product to sell in 30 days. This way, we take things off your hands as we function as your local office in China. 

Another great way to find the right supplier is to visit them or attend trade shows. And if this sounds too daunting to do on your own, you don’t have to worry. You can come to visit their factories, get together for meetings, or go to their trade shows in one fell swoop with our help. We will prepare you for China, plan your itinerary, and arrange supplier meetings, transportation, and accommodation. A GlobalTQM representative can accompany you to a trade show or a factory visit to take notes, translate, and create a sample list.

Or if you prefer not to fly all the way to China, then we can visit your manufacturer for you, to document the condition of their factory with detailed pictures, so you get a REAL account of the facilities and see if they are a right fit for your company.

Ensure Safe Payments

According to Sales Hoo, one of the biggest ways to avoid any type of scams is to use safe payment methods. PayPal, credit cards, and Alipay are your safest choices. “Some businesses only accept Western Union or wire transfers. Be wary of these methods. They are not protected at all. If you send someone money this way and they don’t send you the goods, you’re out of luck. There’s nothing you can do to get it back.”

Sample The Products

By ordering a sample of the product, you will be able to get some very important numbers. First, the actual shipping times vs. what they claim to be their estimates. If it takes way longer than expected, then this particular supplier may not be trustworthy. You will also get a fair idea of their packaging quality upon arrival, and gauge whether it’s packaged professionally, and if the final product is the highest quality, and if it represents your brand. All of these steps will help you avoid fraud with your China manufacturing.

But we understand if this process might seem too long or if you simply need things to happen at a faster pace. This is why we created our Sample Concierge service, where we review your product samples on Chinese soil so you can analyze and compare samples before you place any type of order with Chinese suppliers. That way, you’ll avoid receiving incorrect or broken samples while also choosing the sample of the product you actually need. All of which can save you time and money (as well as helping you steer free of fraud!) 

Get a Last Minute Inspection

Another way to avoid scams is to get an inspection before your products actually ship from China. Because can you imagine the cost of receiving a full container of damaged or faulty goods? This means you would have to risk actually paying your Chinese manufacturer for their products only to find out they were all wrong to begin with. Not receiving what you are expecting is a serious problem. Not to mention a huge fraud risk for your company.  So what you really need to do in order to avoid this is to run an inspection before the goods leave the factory. But, to be honest, this is complicated to manage if you’re not on Chinese ground yourself… or is it? With our pre-shipment final inspection service, we will ensure the factory has produced their goods according to all the requirements, with the highest quality possible, before the goods leave the factory in China. 

Hire a Sourcing Agent

“A sourcing agent is an individual or a company that can help you import products from China. They are often called purchasing agents. Good purchasing agents can be very valuable, but they’re extremely hard to come by.”
- Nathan Resnick, entrepreneur and CEO of Sourcify, written in an article written at XSellCo


For China manufacturing processes, one of the fastest, safest, and most reliable ways to get your products at home and avoid fraud is to hire a sourcing agent. At GlobalTQM, we focus on becoming your office & team of experts on Chinese soil in order to get you the stress-free sourcing support you need to build your business with Chinese imports. We offer all sorts of services for every sourcing need, but our best packages include an expert Chinese sourcing package that can help you get a product to sell in 30 days or our A-Z package, where we do absolutely everything for you - find the suppliers, source your products, manage your order quality, run a pre-shipment final inspection, and run a trademark search and registration process. 

Avoiding scams and frauds when you are manufacturing your products in China can be very easy if you follow these simple tips. The best part is that no matter what stage you’re in with your sourcing process, we can help you move forward and grow your business. Get in touch with us for more information.

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