China supplier due-diligence checklist

This checklist is a condensed working version of the methodology published in Sinospect’s China supplier qualification cluster. It is meant to be printed, shared with a procurement team, attached to an internal diligence pack, or referenced in an EPC’s supplier-shortlist documentation. To save a clean copy locally, use your browser’s “Print → Save as PDF” option.

Each item below is a binary check that rules out a specific failure mode. The order is the order most buyers should follow: legal identity first, then capability evidence, then references, then production capability, then quotation hygiene, then documentation control. Skipping the early items to focus on the later ones is the most common mistake in China-side procurement diligence.

1. Legal identity

Before evaluating capability, confirm the legal entity behind the quotation is the one the buyer would contract with. A supplier’s website is the easiest thing to fabricate; verification starts from the business licence.

• Business licence requested and received — a scanned copy of the current Chinese business licence (营业执照), legible, in full.
• Registry cross-check completed — entity confirmed in the National Enterprise Credit Information Publicity System (SAMR) by Unified Social Credit Code or registered Chinese name. How to verify.
• Business scope includes manufacturing of the equipment category — the registered business scope (经营范围) on the licence covers the equipment being quoted. A supplier whose scope omits manufacturing is a trading company, not the producer. How to tell.
• Registered status is normal — entity is not flagged for abnormality or enforcement action; registered capital and incorporation date are consistent with the supplier’s claims about size and history.

2. Capability evidence

Capability is claimed in the presentation pack and proven in the documentation. Each certificate type has its own verification path — receiving the document is not the same as verifying it.

• Management-system certifications authenticated — ISO 9001 (and ISO 14001 / ISO 45001 where relevant) certificates verified through the issuing certification body or IAF CertSearch. Certificate number, legal entity name, site scope, standard, validity period and accreditation status all checked.
• Product certifications verified at source — CE Declarations of Conformity, IECEx, ATEX or IEC type-test reports cross-checked against the issuing body. Where the conformity route requires a notified body, the notified body number and scope are verified in the EU’s NANDO database. What to request.
• Test-lab accreditation confirmed — the laboratory named on test reports has current accreditation with the relevant national accreditation body for the specific test methods cited.

3. References

Logos in a presentation pack are not references. Named end clients with contactable representatives, on projects comparable to the current scope, are.

• Named end-client references provided — at least three references with named individuals, positions and contact paths, on equipment comparable to the current quotation.
• At least one reference contacted directly — conversation completed; the project named, the equipment named, the timeframe confirmed, the named representative acknowledges the engagement.
• Reference scope comparable to current contract — the reference engagement is not materially smaller, simpler or older than the current quotation.

4. Production capability

For commodity equipment from established suppliers with verifiable documentation, the verification can end at the document-authentication step. For higher-value equipment, custom specifications, or any supplier where remote diligence has raised questions, in-person or video confirmation of production capability is the final step.

• Factory address aligns with registered address — the production site claimed by the supplier matches the registered address on the licence, or the discrepancy has been explained and verified (legitimate cases include subsidiary sites and authorised contract manufacturing).
• Production capacity reasonable for project size — the supplier’s declared monthly production volume is consistent with the order being placed and with the registered capital and employee scale on the licence.
• Factory walk-through completed (live video or in-person) for material projects — production floor, QC station, calibration records and staffing observed directly; not a pre-recorded marketing video.

5. Quotation hygiene

What the quotation does not say is often more telling than what it does. A clean quotation enables a like-for-like comparison with other offers; an ambiguous one leaves room for execution disputes later.

• Specification language is unambiguous — no “or equivalent”, no “subject to final design”, no missing model numbers. Where standards are cited, the edition and clause are named. Warning signs.
• Payment terms are commercially reasonable — not 100% T/T in advance; staged payments aligned to milestones (deposit / pre-shipment / on FAT / on commissioning) are documented.
• Factory acceptance event is named in the quotation — the FAT is included in the scope of supply, with a named acceptance criterion and a defined right to witness or reject.
• All project-relevant certifications are explicitly included — missing certifications listed in the spec are not quietly omitted from the quotation; if a required certification is not held, the supplier states this explicitly.

6. Documentation control

Documents present at the qualification stage need to remain valid through delivery. A check at the end of the diligence catches the certificates that were valid when first reviewed but lapse before shipment.

• All certificates within validity period at expected delivery date — ISO, product, type-test certificates all valid not only today but at the contractual delivery window.
• CE Declaration of Conformity cites the directives that apply to the product — not a generic list copied from a different product; the Declaration identifies the manufacturer, the applicable EU legislation, the relevant standards and the product covered.
• Test reports are traceable to an accredited laboratory — the report names the lab; the lab’s accreditation is current for the specific test method.

Decision rule

A supplier passing all six categories has cleared the minimum diligence floor. A supplier failing one or more items has not been disqualified, but has surfaced a finding the buyer should treat as a contractual or commercial input — either resolved before order placement or accepted as a documented risk with mitigation. A supplier unwilling to provide the underlying evidence for any item should be deprioritised.

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