How to Check Chinese Companies: Due Diligence Guide

China remains Ukraine’s largest trading partner: in 2024, the volume of imports from the PRC exceeded $14.4 billion. The focus extends not only to consumer goods, but also to machinery, equipment, chemicals, and electronic products. However, import volumes do not guarantee the reliability of suppliers.

A significant risk for Ukrainian importers is cooperation with fictitious or unscrupulous Chinese companies. That is why conducting a basic check (due diligence) of a potential counterparty is a critically important part of any international trade contract.

⮚ TL; DR: Checking a Chinese supplier is not bureaucracy, but a way to mitigate the risk of financial loss or supply disruption. The article provides a practical guide on where to find information and what it means.

National Enterprise Credit Information Publicity System (全国会信用信息公示系统) is a basic database that contains information about all legal entities and entrepreneurs registered in China. It is an analogue of Ukraine’s Unified State Register of Legal Entities (EDR). The system is available only in Chinese. To use it, you need a VPN or local agent, since the site often does not open from outside China without proxy access.

In the system, you can find:

• registration number and unified credit code (similar to Ukraine’s EDRPOU);
• full and abbreviated name of the company;
• type of legal entity and form of ownership;
• amount of authorized capital (in CNY or USD for companies with foreign investment);
• date of registration;
• registering authority and status of the company (active, liquidated, in the process of liquidation, etc.);
• business license period;
• legal address;
• types of activities;
• date of last data update.

The system also displays:

• data on shareholders and their shares;
• management (director, supervisory board, controllers);
• legal representative (person authorized to act on behalf of the company);
• branches and subsidiaries.

Companies are required to report changes (in name, shareholder structure, director, etc.) within 30 days, which ensures the relative efficiency of information in NECIPS.

⮚ TL;DR: NECIPS serves as the primary entry point for verifying basic registration information. If the data does not match the information in the contract, it is a red flag.

The website 中国购买信息全网, created by the Supreme People’s Court of the PRC, contains data on all companies and individuals that evade the execution of court decisions. The presence of a company in this register means:

• a ban on participation in government procurement;
• restrictions on obtaining licenses and subsidies;
• risk of blocking bank accounts;
• reputational burden for management.

⮚ TL; DR: If a company is on this register, it cannot operate normally. Such a counterparty is dangerous.

This service publishes judgments involving companies, including cases involving contracts, bank or employee misconduct. Only judgments that do not affect state secrets or the rights of minors are displayed.

⮚ TL; DR: The presence of judgments on debt collection is an important signal. A long-term partner with a large number of lost cases is a risk.

This register contains data on companies registered as importers or exporters, including:

• type of transactions;
• status in the logistics chain (manufacturer, intermediary, etc.);
• violations of customs regulations;
• availability of special permits.

The China Customs Administration maintains the system. Companies may be included in the list of unreliable customs participants, which can result in sanctions.

⮚ TL; DR: If a company regularly violates customs regulations, there is a high risk of delays or confiscation of goods.

Since 2021, the Credit History Center of the People’s Bank of China has maintained a register of pledges for equipment, raw materials, finished products, and commodity warehouse certificates. If a company’s property is pledged, this indicates the existence of outstanding obligations.

⮚ TL; DR: Pledges on property are a sign of financial burden. This is not always a bad thing, but it should be considered in a comprehensive assessment.

For a long time, China lacked a centralized system for registering real estate rights, and registration was primarily carried out at the provincial level. However, in April 2023, the government officially completed the creation of the National Real Estate Registration System, which encompasses more than 3,000 registration districts and has issued nearly 800 million certificates. This was a crucial step towards unifying information on the ownership of land, buildings, and structures nationwide.

In theory, such a system could become a valuable source for due diligence, for example, to verify whether a counterparty owns production premises or warehouse space, as is often stated in commercial proposals. However, in practice, the situation is different.

Access to the real estate register in China is limited. Only the owner or an authorized person (for example, a lawyer or a state agency) can obtain an official extract or view information about the object, provided they submit a written request and pay the official fee. There is no open online database, like the Ukrainian State Register of Property Rights. Searching by address or company name is technically impossible for an outsider.

This creates significant restrictions for foreign companies that want to check a Chinese counterparty. In cases where verification of the counterparty’s own or leased production facilities is crucial (for example, to assess production capacity or creditworthiness), the only option is to contact a local representative who has access to registration information.

⮚ TL; DR: China has a centralized system for registering real estate rights, but it is not publicly accessible. To verify the counterparty’s ownership of real estate, an official request or an intermediary with local access is required. Independent verification from abroad is impossible.

Before concluding a contract, we recommend:

1. Check NECIPS — company status, address, management.
2. Compare the data in the contract documents with the data from NECIPS.
3. Check court decisions and enforcement proceedings.
4. Check the customs register and the register of pledges.
5. If necessary, obtain an electronic extract from NECIPS (possible only from the territory of the PRC or through a local agent).
6. If the company operates through Alibaba, Made-in-China, or other B2B platforms, it is worth additionally checking its rating, period of operation on the platform, reviews, and response to claims.

Basic due diligence can be carried out independently – provided that you know Chinese or have access to a professional agent. In more complex cases (high contract amounts, prior risks, or a need for an official opinion), it is recommended to involve a legal advisor with experience in auditing Chinese companies.

⮚ TL;DR: Even a basic audit takes several hours, but saves from severe losses. Do not ignore these tools, especially if the counterparty insists on prepayment.

Between 2022 and 2025, global sanctions regimes have become a key tool in the fields of international security, foreign policy, and economic pressure. Chinese companies — both state-owned and private — are increasingly subject to restrictions from the US, the EU, the UK, Ukraine, and other countries. Working with such counterparties can lead to:

• blocking of payments through banks that adhere to sanctions regimes (especially for dollar or euro transactions);
• freezing of supplies or goods at customs;
• reputational and legal risks for a Ukrainian company;
• opening of proceedings within the framework of financial monitoring and KYC-inspections.

How to check if a company is under sanctions:

1. OFAC (USA) — https://sanctionssearch.ofac.treas.gov.
   Check by name (English) or partial code.
2. European Union (EU Sanctions Map) — https://www.sanctionsmap.eu.
   Specify the country (e.g., China) or a specific company name. The database includes restrictions on human rights violations, IT security, export controls, defense activities, and other relevant areas.
3. United Kingdom (UK Sanctions List) —
   https://www.gov.uk/government/publications/the-uk-sanctions-list.
   Allows you to check individuals and companies that are subject to restrictions under OFSI sanctions provisions.
4. Ukraine (NSDC Sanctions Register) — https://drs.nsdc.gov.ua.
   The National Sanctions Register lets you check whether a company or its beneficiaries are listed under NSDC decisions.

What to do if a company is on one of the lists:

• Determine the nature and scope of the sanctions (financial, commodity, sectoral, etc.).
• Check whether the sanctions cover the specific activity or transaction you are planning.
• Avoid prepayments and signing before obtaining a legal opinion.
• Consult a lawyer specializing in international trade law / sanctions compliance.

⮚ TL;DR: If a Chinese company is subject to US, EU, UK or Ukrainian sanctions, it poses a significant legal risk. Always check the lists before any transaction — especially for technology, raw materials, or defense-related partners.

China’s state reporting systems are complex but accessible. Using them allows you to avoid cooperation with one-day companies, evaders, and violators. In a world where fraud is becoming increasingly sophisticated, checking the counterparty is a fundamental element of business hygiene.

Looking to safeguard your company before entering into a contract with a Chinese supplier? We help Ukrainian businesses conduct legal due diligence of Chinese companies – from a quick check to a comprehensive conclusion with a legal assessment.

✉ Email: kyiv@jvs.law
📞 Phone: +380 (67) 465-77-73