Key Takeaways
- Some post-fair delay is normal — but silence after 3-4 weeks is a serious warning sign
- Verify the supplier's business license immediately — confirm the booth registration matches your contract
- Monitor Qichacha for any changes: legal representative, address, dissolution filings
- Two or more red flags together warrant immediate legal action, not more waiting
- A background check today costs $99 — waiting until the supplier disappears can cost your entire deposit
What Is Normal After the Fair and What Is Alarming
The Canton Fair generates an enormous volume of orders. Legitimate suppliers often need time to process contracts, confirm specifications, and schedule production. Some delay is normal. The question is: how much delay before you should worry?
| Weeks After Deposit | Normal Behavior | Alarming Behavior |
|---|---|---|
| Week 1-2 | Supplier confirms receipt of payment, sends production schedule, asks clarifying questions about specifications | No confirmation of payment receipt; no response to follow-up emails |
| Week 3-4 | Supplier provides material procurement updates, shares photos of raw materials or initial production, confirms shipping date | Generic responses only ("we are working on it"); delays blamed on holidays or material shortages with no evidence |
| Week 5-6 | Supplier shares in-production photos or invites you to schedule a pre-shipment inspection | Silence for 5+ days; phone disconnected; requests to change payment method or send additional money |
| Week 7-8+ | Goods completed or near completion; final payment and shipping arrangements discussed | Suppier still not providing concrete evidence of production; any mention of "company restructuring" or "partner issues" |
What to Verify Right Now
Confirm the booth registration matches your contract
Contact the CFTC buyer service department with your booth number. Request confirmation of the officially registered exhibitor. The name should match your contract — if it does not, you are dealing with a booth renter, and the official exhibitor may be liable.
Run a Qichacha report on the company
Search the company name on Qichacha (qcc.com). Check: Is the company still listed as "active" or "in operation"? Has the legal representative changed since the fair? Has the registered address moved? Has the company entered dissolution or cancellation proceedings? Any "abnormal operation" flag is a critical alert. We can run and interpret this report for $99.
Monitor for recent changes on Qichacha
Set up monitoring (or have your attorney do it) for changes to the company's registration. Fraudulent suppliers often change the legal representative, reduce registered capital, or file for dissolution shortly after the fair — all before buyers realize there is a problem.
Demand specific production evidence
Ask the supplier for concrete proof of production: photos of raw materials with a dated newspaper, video of the production line, a confirmed pre-shipment inspection date. Legitimate suppliers can provide these — fraudulent ones make excuses. If they refuse a pre-shipment inspection, that is a major red flag.
Red Flag Timeline: When to Stop Waiting and Start Acting
Escalate Immediately If You See Any of These
- Supplier has been silent for 7+ days with no explanation
- Qichacha shows the company status changed to "abnormal," "dissolved," or "cancelled"
- Supplier requests additional payment before completing the original order
- Supplier claims bank account changed and provides new payment details
- Phone number on business card or WeChat account is no longer active
- Your contract company name does not match the official exhibitor registration
- Another buyer who met the same supplier reports similar issues
If you see two or more of these red flags, do not wait for "one more week." Contact a PRC attorney immediately. The window for asset preservation is measured in days, not weeks.
Your Escalation Options
| Situation | Recommended Action | Timeline | Cost |
|---|---|---|---|
| Supplier slow but still communicating, no Qichacha flags | Send a formal demand for production evidence; set a firm deadline | 1-2 weeks | Your own effort |
| Supplier unresponsive for 5+ days | Attorney demand letter citing PRC Civil Code breach of contract | 3-7 days for letter; supplier response within 5-7 days | $299 |
| Qichacha shows abnormal status or dissolution filing | Immediate asset preservation application + demand letter | 24-72 hours for freeze order | $399+ court deposit |
| Supplier demanding more money | Treat as potential fraud — criminal complaint + asset preservation | Immediate attorney action | Case assessment |
| Supplier completely disappeared | Full legal recovery: asset preservation + CIETAC or court filing | See recovery timeline | See pricing |
How to Protect Your Deposit at Future Trade Shows
After this experience, you will want to prevent it from happening again. Three concrete steps:
- Verify the exhibitor registration before you leave the fair. Ask for the company's business license at the booth. Take a photo. Before leaving Guangzhou, verify it on Qichacha. A legitimate exhibitor will not object — they expect thorough buyers.
- Use a payment method with protection. Wire transfers to corporate accounts leave a trail. Letters of credit protect both parties. Credit cards offer chargeback rights. Never pay a 50%+ deposit by Western Union or to a personal account — these are unrecoverable if fraud occurs.
- Include a CIETAC arbitration clause. If the contract does not have one, request it. Many Canton Fair contract templates already include it. The clause means you can arbitrate in China with an internationally enforceable award — a powerful deterrent against supplier non-performance. Learn about CIETAC arbitration.
Frequently Asked Questions
"Company restructuring" is one of the most common excuses used by fraudulent Chinese suppliers. Legitimate restructuring is rare and almost never affects existing orders — the company continues operating. If you hear this, immediately run a Qichacha check. If the company has changed its legal representative, address, or registered capital, those are signs of potential dissolution or asset transfer — not restructuring. Send an attorney demand letter immediately to freeze your position and signal that you will not accept this excuse without evidence.
Yes — and this is one of the best ways to verify the situation. Tell the supplier you plan to visit their factory on a specific date. A legitimate supplier will welcome the visit. A fraudulent supplier will make excuses: the factory is "being renovated," the manager is "traveling," or it is "not convenient right now." If they refuse a visit, treat it as a red flag. If you cannot visit yourself, hire a third-party inspection company (SGS, TUV, Intertek) to do it — cost is $300-$800. For orders over $10,000, this is inexpensive insurance.
Not without proof of production. This is a common pressure tactic: "The goods are ready but we cannot ship until the balance is paid." In standard China trade practice, the balance is paid against shipping documents (bill of lading) or after a satisfactory pre-shipment inspection — not before. Request a video call showing the finished goods with your order specifications visible, or arrange a third-party inspection. If the supplier refuses both and demands payment, this is likely a scam. Do not pay. Contact your attorney.
Not necessarily — but your recovery window is narrower. The PRC Civil Code provides a 3-year statute of limitations from the breach date, so you are legally within the window. The practical concern is that the supplier may have already dissolved the company or moved assets. Run a Qichacha report immediately. If the company is still active, asset preservation is still possible. If it has been dissolved, recovery may require suing the individual shareholders — which is harder but still possible under the 2024 PRC Company Law. Do not delay further. Get a case assessment.