Before Paying a Chinese Supplier: Match the Seller, Contracting Entity and Bank Beneficiary

Situation

Before sending a supplier deposit, connect the trading name, the legal entity signing the contract and the named bank beneficiary. A discrepancy needs an explanation and independent verification, not an automatic accusation of fraud. An overseas buyer may negotiate with a trading name, receive a contract bearing a Chinese company name, and then be asked to pay a different beneficiary. Before releasing a deposit, the buyer needs a clear record of who is selling the goods, who is responsible for the agreement, and who is authorised to receive the payment. This is a preventive checklist, not a description of an actual client case. Start by requesting the supplier's full registered Chinese name, Unified Social Credit Code and a legible business licence. Chinese registration rules identify matters such as the entity's name, type, business scope, address and legal representative. The implementing rules specify information appearing on the business licence. [1][2] Compare the licence with an independent search of the National Enterprise Credit Information Publicity System, using the registered name or code. Government guidance identifies that system as an official route for checking basic enterprise information. [3] Record the search date and the result you actually obtained. A brand, an English translation, a website address or a salesperson's display name should not be used alone to identify the contracting company. If the registry is unavailable or a result cannot be matched confidently, leave that item unresolved rather than treating the supplier's screenshot as independent confirmation.

Key Issue

Create a three-column identity record: commercial seller, contracting entity and bank beneficiary. For each, record the exact name, the document supporting it, and any unresolved difference. The objective is to make the relationship understandable before payment, rather than force every transaction into a single company name. A different beneficiary is not automatically evidence of fraud. It might be described as a trading company, an affiliated company or a collection agent. Treat that explanation as something to verify. Ask the contracting supplier to identify the recipient, explain the relationship and provide appropriate written payment instructions. Obtain advice on whether the proposed arrangement fits the contract and applicable banking, foreign-exchange and other requirements. A payment letter alone does not establish that every legal or banking requirement has been satisfied. Similarly, finding a registered company does not establish product quality, factory ownership, financial capacity, delivery performance or ownership of a particular bank account. Company-identity checking is one part of due diligence. It should not be presented as a factory inspection, financial audit or guarantee that a deposit can be recovered.

Documents to Review

• Full registered Chinese company name, Unified Social Credit Code and a legible business licence; retain the original file received.
• Independent registry search record, search date and any mismatch or access limitation.
• Quotation, purchase order and contract versions showing the exact seller, signatory and responsibility for delivery, defects and refunds.
• Invoice and payment instructions showing the full beneficiary name, bank and account details; avoid circulating these beyond those who need them.
• For a different beneficiary, the supplier's written explanation, supporting relationship or authority documents and agreed treatment of the payment under the contract.
• A record of independent verification: the established contact used, the person contacted, the date and the instructions confirmed.

Possible China-Side Options

• Resolve identity differences before authorising a new payment. Request corrected documents where the mismatch is a mistake; do not edit a supplier's document yourself and assume it has agreed.
• Verify new or changed banking instructions through a previously established, independently checked contact channel. Do not use only the reply address or telephone number supplied in the message requesting the change. The FBI specifically recommends verifying changes to account numbers or payment procedures. [4]
• Use a second internal approval for an unusual beneficiary or a last-minute payment change. Give the approver the discrepancy and verification record, not just the invoice total.
• For an existing payment obligation, obtain prompt advice on the contract and deadlines before withholding a payment. A verification concern does not itself determine whether delay is contractually permitted.

Risk Factors

• A familiar email thread, logo or company stamp is not enough on its own to authenticate a new payment instruction. Business-email compromise can imitate a known business contact. [4]
• A successful transfer receipt proves neither satisfactory goods nor the supplier's acceptance of all disputed terms. Keep the payment record together with the contract and the instructions on which the transfer was based.
• Never assume that an unexplained difference proves criminal conduct. Conversely, commercial urgency is not a substitute for resolving a material mismatch.

Next Step

Before the next deposit, prepare the three-column record and identify the missing evidence. If funds have already been sent to a suspected fraudulent recipient, contact your bank promptly through its official channel and ask what urgent response is available; preserve the correspondence and seek appropriate advice. Recovery is not guaranteed. [4] For an initial discussion about the documents requiring review, use the HAIYU contact page: https://www.haiyulaw.com/contact . Do not submit bank credentials, passwords or unnecessary identity documents. General information only, current as source-checked on 26 October 2026. This guide is not legal advice for a particular transaction, a finding about any company, or a promise of recovery. The appropriate checks depend on the transaction, the contract and applicable law. Official sources [1] State Administration for Market Regulation, Regulations on the Administration of Registration of Market Entities, especially Article 8: https://www.samr.gov.cn/djzcj/zyfb/zjfb/art/2023/art_2a71fe3f890947e4860918946cb60386.html [2] State Administration for Market Regulation, Implementing Rules, especially Article 23 (business licence particulars): https://www.samr.gov.cn/zw/zfxxgk/fdzdgknr/fgs/art/2023/art_37bd9ff741584f9289394193fe2c3c3a.html [3] Chinese government, official enterprise-information search guidance and link to the National Enterprise Credit Information Publicity System: https://app.www.gov.cn/govdata/gov/201704/07/402505/article.html [4] FBI, Business Email Compromise: https://www.fbi.gov/how-we-can-help-you/common-frauds-and-scams/business-email-compromise