Supplier Evidence
China Supplier Due Diligence Checklist
Verify the contracting entity, payment party, relevant capability, offered scope, evidence, subcontracting, commercial controls, and open risks.
China supplier due diligence should verify the commercial party, relevant capability, offered scope, evidence, and unresolved risk before a buyer commits. It is not a single database lookup and it is not a promise that future performance will be perfect. Use this checklist to organize questions, source documents, and escalation decisions.
1. Verify the contracting identity
| Check | Record | Escalate when |
|---|---|---|
| Legal entity | Registered name, identifier, address, status, business scope | Names or locations conflict across documents |
| Quotation and contract | Issuer, signatory, company stamp or approval process as applicable | The seller cannot explain which entity carries responsibility |
| Payment | Beneficiary name, bank location, currency, change-verification procedure | Last-minute account change or unrelated beneficiary appears |
| Manufacturing site | Address, relevant processes, ownership or relationship explanation | The visited or shown site is not tied to the offered product |
| Export role | Manufacturer, trader, exporter, partner, or subcontractor responsibilities | Commercial and production roles remain hidden |
2. Match capability to the exact requirement
General company size, an attractive factory, or experience with a different product does not prove fit. Map the buyer’s critical materials, processes, dimensions, output, quality controls, testing, software, packaging, and documentation to the supplier’s proposed production path. Record subcontracted operations and who controls them.
3. Test the quotation for completeness
- Does the quotation reference the current RFQ and drawings?
- Are inclusions, options, buyer-supplied items, assumptions, and exclusions explicit?
- Are technical alternatives identified rather than silently substituted?
- Do payment, lead time, warranty, service, packing, and delivery terms have a clear basis?
- Are open technical questions separated from commercial acceptance?
4. Request evidence tied to the offered scope
Useful evidence may include relevant drawings, material specifications, equipment nameplates, process records, samples, test reports, dated production photos or videos, parts lists, software demonstrations, packing records, and customer references only when permission and verification are appropriate. A certificate image should be checked for entity, scope, issuer, validity, and relevance; do not treat unrelated certificates as product approval.
5. Use samples, visits, audits, and inspections for different decisions
A sample can test an approved product reference. A factory visit can clarify people, processes, and project questions. An audit evaluates defined systems or capability against criteria. Product inspection checks goods at a defined stage. Machinery FAT tests agreed functions and performance. Choose activities based on risk instead of assuming one replaces all others.
6. Set payment and change controls
Confirm how bank-detail changes will be independently verified, who can approve specification changes, how quotation revisions are controlled, what evidence releases payment stages, and how unresolved issues affect shipment or acceptance. Buyers should obtain qualified legal, banking, tax, import, and compliance advice for their transaction.
7. Write a go, clarify, or stop decision
Summarize verified facts, supplier statements, missing evidence, material deviations, commercial exposure, and next actions. A supplier can remain under clarification without being labeled good or bad. Stop when identity, payment, critical capability, or willingness to document the agreed scope cannot be made sufficiently clear for the buyer’s risk level.
This checklist supports buyer preparation and record keeping. It is not a credit report, legal opinion, compliance certification, audit, inspection, or guarantee of supplier performance.
Questions buyers ask
Is a business license enough?
No. It supports entity verification but does not prove product capability, financial strength, export compliance, quality, capacity, or future performance.
Does a factory visit prove the supplier is reliable?
No. It provides observations and discussion. Reliability decisions also require requirement-specific evidence, commercial review, samples or tests, and risk-appropriate verification.
When should due diligence be repeated?
Review it when the supplier, entity, bank details, factory, product scope, ownership, transaction size, risk, or time since the last review materially changes.