Both can be good suppliers. The risk is a trading company presenting itself as a factory: you pay a margin, have less control over quality, and may not know who actually makes your goods.
Signals Canton Check checks
| Signal | Points to a factory | Points to a trader |
|---|---|---|
| Business scope (经营范围) | Includes 生产 / 制造 / 加工 (production / manufacturing / processing) | Only 销售 / 批发 / 进出口 (sales / wholesale / import-export) |
| Industry code | C (manufacturing) | F (wholesale and retail) |
| Name | 制造 / 制品 / 工厂 / 实业 | 贸易 / 商贸 / 进出口 |
| Insured staff (official) | 20+ employees with social insurance | Fewer than 5 |
| Address | Industrial zone (开发区 / 工业园 / 工业区) | Office building (大厦 / 写字楼 / room number) |
| Marketplace label | "Manufacturer" | "Trading Company" |
Canton Check combines these into Factory / Trading company / Unclear, with a confidence level and the reasons. It is a probability, not proof.
Red flags
- Claims of "500 workers" on Alibaba, but 3 insured employees in the registry.
- Business scope has no production terms, but the store shows factory photos.
- The Alibaba store's "years on platform" is longer than the legal entity has existed (possible entity switch).
Finding the real manufacturer
In the full report, "Finding the real manufacturer" lists corporate shareholders and flags those whose names suggest manufacturing. A reverse image search of product photos can also reveal the original factory.