WAG has visited 200+ factories across China on behalf of Australian businesses. Most Australian businesses discover the truth about a Chinese supplier too late—after a deposit is paid, after containers have shipped, after quality problems surface in their warehouse.
A factory visit cannot eliminate every risk. But it catches more than any email exchange, video call, or document review ever will.
This checklist covers the complete process: before you book anything, before you board the plane, at the factory, and after you get home.
Part 1: Before You Book Anything
Why You Cannot Rely on Online Communication Alone
Suppliers in China have become sophisticated at presenting themselves online. A professional website, a Mandarin business card, and a polished Alibaba storefront can all exist for a company that has never manufactured anything.
The warning signs are rarely visible in documents. They are visible in person.
Examples of issues discovered: addresses pointing to office buildings instead of production facilities, rented equipment returned before afternoon shifts, owners surprised by visits because they had been brokering orders from other manufacturers.
Verify the Supplier Before You Travel
Step 1 — Check the business licence against SAMR: The State Administration for Market Regulation (SAMR) maintains a public registry. Confirm the legal name matches, registered address corresponds to actual manufacturing facility, and business scope includes your product category.
Step 2 — Confirm the factory address with satellite imagery: Use Google Maps or Baidu Maps. Look for industrial zones, not downtown commercial districts.
Step 3 — Cross-reference certifications: Verify certificate numbers directly on the issuing body's website. Certifications can be expired, counterfeit, or issued to a different company.
Step 4 — Request references: Ask for companies in your country or region.
Step 5 — Conduct a pre-visit audit by a local agent: A half-day inspection report costs AUD 200-400.
Step 6 — Define your red lines: Common red lines include: refusal to provide business licence copies, inability to verify address, and quote significantly lower than market rate.
When to Sign an NDA
If sharing product specifications, formulations, or proprietary designs before visiting, request a Non-Disclosure Agreement. Chinese law recognises NDAs, and reputable manufacturers are accustomed to signing them.
Part 2: Planning Your China Trip
Visa and Passport Requirements for Australian Citizens
Tourist visa (L visa): Valid for stays up to 30 days, suitable for short visits.
Business visa (M or F visa): Required if signing contracts, attending meetings, or conducting commercial activities.
Requirements: passport valid for 6+ months beyond intended departure date, invitation letter from Chinese contact, completed visa application form, and passport-sized photograph.
Allow 4-6 weeks total lead time.
Which City to Visit
Shenzhen and Dongguan (Pearl River Delta): Best for electronics, consumer tech, AV equipment, smart devices, printing and packaging, plastics and moulding.
Guangzhou (Pearl River Delta): Best for furniture, garments, textiles, leather goods, and machinery.
Hangzhou and Ningbo (Zhejiang): Best for e-commerce products, homewares, textiles, machinery, and solar equipment.
Shanghai and Suzhou (Yangtze River Delta): Best for automotive components, aerospace parts, precision engineering, chemicals, and cosmetics.
Yiwu (Zhejiang): Best for general consumer goods, wholesale purchasing, novelties, and packaging.
Flights, Accommodation, and Local Transport
Flights: Shanghai Pudong (PVG) and Guangzhou Baiyun (CAN) are most common entry points. Shenzhen Bao'an (SZX) convenient for Pearl River Delta visits.
Accommodation: Book in the district where suppliers are located. In Shenzhen: Futian and Nanshan districts. In Guangzhou: Tianhe district near Canton Fair complex. Budget AUD 120-250 per night for business-class hotel.
Local Transport: Use Didi (Chinese Uber)—reliable, inexpensive, works with foreign credit cards when linked before arrival. For inter-city travel under 5 hours, the high-speed rail network is faster and more reliable than domestic flights.
Apps You Need Before You Arrive
| App | Purpose |
|---|---|
| Primary communication with suppliers | |
| Didi | Ground transport |
| Pleco | Chinese-English dictionary with camera OCR |
| Google Translate | English-to-Chinese translation |
| Maps.me or Baidu Maps | Navigation, especially industrial areas |
| Trip.com or Ctrip | Hotel and flight booking within China |
| CamScanner | Scan and send documents |
Cultural Etiquette: What Australian Businesses Get Wrong
Do not: present clocks or watches as gifts (symbolises death), give sharp objects (symbolises cutting the relationship), use the number 4 (sounds like word for death), shake hands and then put hands in pockets, or accept tea with one hand.
Do: exchange business cards with both hands (read carefully before putting away), accept tea when offered, arrive on time or slightly early, allow host to introduce you to others first, and reciprocate hospitality (if taken to dinner, offer to pay for next meal).
Part 3: At the Factory
Documents to Request Immediately
- Business Licence (营业执照) — verify registration number against SAMR
- Quality Certifications — photograph and verify numbers on issuing body's website
- Export Licence — required for direct exports
- Previous Export Records — confirms experience with target market
What to Observe in the Facility
Production floor: Are machines operational? Is production scale consistent with quotes? Is the facility organised and clean? Are workers using correct PPE?
Storage and packaging areas: Are finished goods clearly labelled and separated by order? Is there a dedicated quality control area with testing equipment? Are raw materials stored properly with batch numbers and dates?
Office areas: Is there a dedicated R&D or engineering team on-site? Do they have required testing equipment?
Questions You Must Ask on the Factory Floor
- What is your minimum order quantity (MOQ) and why?
- What is the typical lead time from deposit to shipment?
- What is included in tooling/setup costs and refund conditions?
- Who handles quality control—in-house or third party?
- What percentage shipped to Australia/New Zealand in past 12 months?
- Can I see testing equipment for my specific product requirements?
- What happens if products do not meet agreed specifications?
- Who is your most recent international customer, and can I contact them?
- Do you manufacture this product yourself or subcontract any part?
- What are your payment terms for international buyers?
If the factory cannot clearly answer questions 4, 9, or 10, treat as serious warning.
Red Flags That Should Stop You from Signing
- Factory refuses to let you photograph the production line
- Equipment does not match claimed production capacity
- Sample products look different from photos
- No visible quality control process
- Factory rushes you to sign before you leave
- Owner cannot explain production process step by step
- Quoted price significantly below market rate
Photography and Documentation
Take photographs and videos throughout. Best evidence includes: production line in operation, specific machines being used, batch numbers and labels on finished goods, quality control area and testing equipment, loading docks and packaging area, and nameplates on key equipment. Photograph all documents. Date and timestamp photos.
Part 4: After the Visit
Review Your Notes Within 48 Hours
Write structured comparison including: what you confirmed as legitimate, what raised questions, specific red flags, terms quoted verbally, and overall impression of management quality.
Request a Formal Price Quotation
Request quotation including: unit price by order quantity break points, tooling and setup costs and refund conditions, payment terms, lead time from deposit to ready-for-shipment, port of loading and estimated shipping time to Australia, and relevant Incoterms (typically FOB, CIF, or DDP).
Negotiating Payment Terms
| Order Stage | Payment |
|---|---|
| Deposit (after contract signed) | 30% of total order value |
| Balance (before shipment) | 70% of total order value |
| Repeat orders | May qualify for improved terms |
Never pay 100% upfront on first order. Standard deposit of 30% protects both parties.
Quality Control After the Visit
Pre-shipment inspection (PSI): Third-party inspector visits before container loading. Typically AUD 200-400 per day.
Container loading supervision: Confirm correct goods are packed and secured properly.
Testing samples: Request pre-shipment samples and test against specifications before balance is paid.
Part 5: How We Help
WAG has accompanied 200+ Australian businesses on factory visits across Guangdong, Zhejiang, and Jiangsu provinces.
Services include: pre-visit supplier verification, factory shortlisting based on product and volume requirements, bilingual accompaniment at all factory visits, on-site translation and negotiation support, post-visit supplier reference checks, and pre-shipment quality inspection coordination.
Frequently Asked Questions
Do Australian businesses need a visa to visit factories in China?
Yes. Australian citizens need a business visa (M or F) or tourist visa (L). Apply 4-6 weeks before planned travel date.
How far in advance should I contact a factory before visiting?
Give factories at least 2-3 weeks notice. More notice means more likely to have relevant staff and documentation prepared.
What is the difference between a factory and a trading company?
A factory owns production equipment and employs workers to make your product. A trading company sources products from factories and resells them. Trading companies often appear more professional in marketing materials.
Should I visit more than one factory on the same trip?
Yes. Visit at least 2-3 factories for the same product before making a decision. Typically arrange visits to 2-3 pre-screened factories per day.
What if I cannot travel to China myself?
Hire a local inspection agent for a pre-visit audit. Half-day inspection report typically costs AUD 200-400.
How do I know if a Chinese factory is legitimate?
Check business licence against SAMR, verify quality certifications with issuing body, confirm registered address matches physical location, conduct pre-visit audit, and visit in person before paying significant deposit.
What payment terms should I negotiate for first orders?
Standard is 30% deposit, 70% balance before shipment. Be cautious of factories demanding full payment upfront.
How do I protect myself if something goes wrong after I pay?
Use formal purchase agreement with clear specifications, quality requirements, and dispute resolution terms. Arrange pre-shipment inspection. Use letter of credit (L/C) for larger orders. Never transfer funds to personal accounts.
What is the best time of year to visit factories in China?
March to May and September to November offer comfortable weather and coincide with major trade shows. Avoid Chinese New Year (January/February) when most factories close for 2-4 weeks.
Winning Adventure Global handles the complete factory visit process for Australian businesses. Response within 4 business hours.