Sourcing Guides & Tips

Common China Sourcing Scams and How to Avoid Them

6 min readVishal Saini

TL;DR

Most China sourcing scams follow a handful of repeatable patterns: personal-account payment requests, missing business licenses, prices far below every other quote, and pressure to skip standard deposit terms. Recognizing these patterns before paying a deposit is the single best protection a buyer has.

Scams are rare relative to the sheer volume of legitimate trade that moves between China and the rest of the world every day — but when they happen, they're expensive, and first-time buyers are the most common target. The good news is that almost every China sourcing scam follows one of a handful of recognizable patterns. Learn the patterns, and you can screen out the risk before you ever send a deposit.

The personal-account payment request

Legitimate factories get paid through a business bank account tied to their registered company name — that's how they pay their own suppliers, staff, and taxes. A request to wire money to a personal account, or to a personal Alipay or WeChat, is the single most common pattern in supplier scams. If the deal falls apart afterward, there's no verifiable company on the other end to chase, and no paper trail tying the payment to a real business.

The quote that's dramatically lower than everyone else's

An outlier-low price on an otherwise identical spec usually means one of three things: the supplier is quoting a lower spec than you asked for and hoping you won't notice, they're planning a bait-and-switch after your deposit clears, or the listing was never backed by real production capacity in the first place. Get the exact spec confirmed in writing before comparing quotes — a price that looks too good almost always is.

Refusing a video call or live factory walkthrough

A real factory has nothing to hide about its production floor, and most are used to buyers asking for a quick video call before committing to a first order. Refusing this request doesn't prove fraud on its own — some legitimate smaller workshops are simply camera-shy — but combined with any other flag on this list, it's a strong signal to slow down and verify further.

Pressure to pay 100% upfront

The industry-standard structure is a deposit — commonly 30% — before production starts, with the balance due before or at shipment. A supplier who insists on full payment upfront, especially early in the relationship, is removing your only real leverage if the goods don't show up, don't match the sample, or never ship at all.

How to protect yourself

  • Ask for the business license (营业执照) and verify the registration number independently before sending any payment
  • Insist on a business bank account for payment — never a personal account or personal payment app
  • Request a video call or live walkthrough of the actual production floor, not just photos
  • Get the exact product spec confirmed in writing, then compare quotes like-for-like rather than by headline price alone
  • Stick to standard deposit + balance terms — a 30% deposit before production, balance before shipment, is normal and reasonable to ask for
  • Order a paid sample before committing to a bulk order, even if it costs a little more upfront

None of these checks take more than a day or two to run, and together they catch the overwhelming majority of supplier scams before any money changes hands. This is essentially the same checklist a sourcing agent runs before ever recommending a factory — if you'd rather have someone else run it for you, that verification is built into how we vet every supplier we work with.

FAQ

What's the most common China sourcing scam?

Being asked to pay a deposit to a personal bank account or personal Alipay/WeChat instead of a registered company account. Legitimate factories are paid through a business account tied to their registered company name.

Is a very low quote always a scam?

Not always, but an outlier-low price on an identical spec is one of the clearest warning signs. It often means a lower spec than requested, a planned bait-and-switch after deposit, or no real intent to ship.

Should I always insist on a video call with a supplier?

It's a good practice, especially for a first order. A refusal alone doesn't prove fraud, but combined with any other warning sign — personal payment requests, pressure for full payment upfront — it's a reason to slow down.

How much deposit is normal to pay upfront?

Around 30% before production starts is standard, with the balance due before or at shipment. A supplier insisting on 100% upfront is removing your leverage if something goes wrong.

Vishal Saini

Founder, The Unique Choice

Vishal Saini is the founder of The Unique Choice, where he works directly with factories and suppliers across mainland China and Hong Kong to help international buyers source, inspect, and ship products with confidence.