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Shenzhen

Trading company or factory: how to know who you are really talking to

A trading company is not a problem in itself. Not knowing which one you have is — it changes the price, the lead time, and who fixes a defect.

France → China

Some trading companies are excellent. They aggregate small factories, carry the quality risk, and give a foreign buyer reach that would take years to build alone. Others simply add a margin and forward your emails.

The document that settles it

The business licence states the permitted scope of activity, and it is public. A manufacturer's scope names production; a trader's names wholesale and import-export. Reading it takes minutes and removes the guesswork entirely.

Three signals before you even ask

  • The catalogue is unusually broad. Real factories are narrow; they own specific machines.
  • Technical questions come back slowly and slightly reworded — they were forwarded.
  • The address is an office tower. Not disqualifying, but it means the making happens elsewhere.
SignalTrading companyFactory
Business licence scopeWholesale and import-exportProduction
CatalogueUnusually broadNarrow — they own specific machines
Technical questionsCome back slowly and slightly rewordedAnswered without being forwarded
AddressAn office tower — the making happens elsewhereWhere the machines are

What to do with the answer

If it is a trader, decide what you are paying the margin for. Quality inspection you would otherwise arrange? Consolidation across three factories? Those are worth paying for. Pure message-passing is not — and once you know, you can negotiate on the real basis rather than on a fiction.