THE FACTORY FLOOR, IN PLAIN ENGLISH

China factory visit glossary

20 sourcing terms.
What they mean. What to check.

From the company you meet to the goods you approve: the language of a factory visit, with Chinese terms, pinyin and practical questions for your supplier.

ChinaFactoryHost · Updated 15 October 2026

20 terms · 5 stages of a visit

Who You Are Dealing With

Factory

工厂 (gōngchǎng)

A business that operates production equipment and employs or manages the people who make products.

What to ask and check

Why it matters

Direct access to production can help you understand processes, quality and scheduling. The label “factory” alone does not establish where your order will be made.

On your visit

Ask to see the production floor, raw material area and finished goods area, not just the showroom. Check that the machines match your product.

Watch for

A tidy showroom and a few machines do not prove your order will be made there.

Trading Company

贸易公司 (màoyì gōngsī)

A company that buys products from factories and resells them to you.

What to ask and check

Why it matters

It can combine several products and handle small orders, but it adds a margin and usually does not control production.

On your visit

Ask who makes the product, who owns the moulds, who schedules production and who arranges shipment. Clarify the role of each business rather than judging by a single answer.

Watch for

The risk is not the trading company itself. It is not being told that is what you are dealing with.

Factory-Trading Integrated

工贸一体 (gōngmào yītǐ)

A company that runs its own factory and also has a trading or export arm.

What to ask and check

Why it matters

It can be a strong partner, but the factory may make only part of what the company sells.

On your visit

Ask which products are made in-house and which are sourced elsewhere. Ask to see the line for your specific product.

Watch for

Seeing one product being made and assuming the whole catalogue is made there.

Subcontracting

分包 / 外协 (fēnbāo / wàixié)

A factory passes some processes, or a whole order, to another workshop.

What to ask and check

Why it matters

Samples and bulk production may involve different sites or processes. Undisclosed changes can make quality and responsibility harder to track.

On your visit

Ask which processes, such as plating, painting or assembly, happen elsewhere. Agree which subcontractors or changes require your written approval before production.

Watch for

Visiting only the main factory while key steps happen elsewhere.

Business Licence Scope

经营范围 (jīngyíng fànwéi)

The list of activities a Chinese company is registered to carry out, shown on its business licence.

What to ask and check

Why it matters

Manufacturing or processing activities in the registered scope are useful clues, but neither the wording nor a licence alone proves that a company makes your product.

On your visit

Compare the registered activities with the work you see on site. Check the company name and code in the National Enterprise Credit Information Publicity System, and clarify any different contracting or payment entity.

Watch for

Accepting a licence photo without checking that the company name matches the contract, invoice and bank account.

What You See on Site

Production Line

生产线 / 产线 (shēngchǎnxiàn / chǎnxiàn)

The sequence of machines and workstations where a product is made or assembled.

What to ask and check

Why it matters

Observing the line helps you understand processes and capacity assumptions. A short walk-through does not establish sustained output.

On your visit

Look for your product or a similar one. Count active workers and machines, and ask what this line produces each day.

Watch for

Treating a brief demonstration as evidence of routine output. Ask about schedules and records as well as what is running.

Lead Time

交期 (jiāoqī)

The agreed time between a defined starting event and a defined delivery milestone, such as deposit receipt to goods ready for shipment.

What to ask and check

Why it matters

It affects your launch date, stock plan and cash flow. Agree the start and end points rather than relying on the number of days alone.

On your visit

Ask how many orders are in the queue, what the current capacity is and whether the quoted time includes inspection, packing and transport to the port.

Watch for

A lead time quoted for production only.

Chinese New Year Shutdown

春节停工 (chūnjié tínggōng)

The period around Chinese New Year when factories and logistics providers close or run at reduced capacity.

What to ask and check

Why it matters

Factories and logistics providers may slow down before the public holiday and recover gradually afterwards. Dates and recovery time vary by supplier.

On your visit

Ask for closing and restart dates, order cut-offs and the expected return to normal output. Work backwards from your delivery date and confirm the plan with the factory and logistics provider.

Watch for

Assuming workers are back on the first working day.

Factory Audit

验厂 (yànchǎng)

A structured review of a factory's capacity, management systems, quality control and compliance.

What to ask and check

Why it matters

It gives you evidence beyond what the supplier says about itself.

On your visit

Decide what you need to verify, such as capacity, working conditions or quality processes, and whether a visit, a third-party audit or both fit your order.

Watch for

Treating a certificate or a staged visit as proof of everyday practice.

Pre-shipment Inspection

出货前检验 / 验货 (chūhuò qián jiǎnyàn / yànhuò)

A check of finished goods before they leave the factory, covering quantity, quality and packaging.

What to ask and check

Why it matters

It can identify problems before dispatch and inform an agreed payment or release decision. Sampling does not guarantee that every unit is defect-free.

On your visit

Agree the specification, defect categories, sampling plan and acceptance criteria with your inspection provider. Confirm its production-completion and packing requirements before booking; providers and orders differ.

Watch for

Treating a generic AQL number or an inspection booking as approval to pay or ship. Review the actual result against your agreed release conditions.

What You Negotiate

MOQ (Minimum Order Quantity)

起订量 (qǐdìngliàng)

The smallest quantity a supplier agrees to supply for an order, product, colour or other specified variant.

What to ask and check

Why it matters

It covers setup, materials and tooling, so it affects both unit price and how much stock you must hold.

On your visit

Ask what drives the MOQ for your product, such as materials, colours or packaging, and what changes if you reduce variants.

Watch for

Comparing MOQ figures without checking whether they apply per order, design, colour or packaging variant.

Sampling

打样 (dǎyàng)

Making a small number of samples before mass production to confirm appearance, size and function.

What to ask and check

Why it matters

It lets you catch design and material problems before committing to a bulk order.

On your visit

Ask whether samples come from the production line or a separate sample room, and whether they use the same materials as bulk.

Watch for

A handmade sample that the production line cannot repeat.

Golden Sample

封样 / 金样 (fēngyàng / jīnyàng)

An approved reference sample used alongside the written specification to assess production goods.

What to ask and check

Why it matters

It provides a shared physical reference for appearance and workmanship. It does not replace measurable specifications or agreed test requirements.

On your visit

Sign and date it, record the version and keep one copy each. Photograph it from every side.

Watch for

Approving a sample without identifying its version, materials and the written specification it represents.

Tooling (Mold)

模具 (mújù) · 开模 (kāimó): making new tooling

The custom moulds or dies used to shape parts, common in plastic, die-cast and stamped products.

What to ask and check

Why it matters

Custom tooling can involve a separate upfront cost and affect your ability to move production. Agree ownership, access and transfer conditions in writing.

On your visit

Ask to see existing tooling. Confirm who will own the new tooling, where it will be stored and who pays for repair and replacement.

Watch for

Paying a tooling fee without a written statement of ownership.

Tax-inclusive vs Tax-exclusive Price

含税价 / 不含税价 (hánshuì jià / bù hánshuì jià)

Whether a quoted price includes Chinese VAT.

What to ask and check

Why it matters

It changes what the quoted price covers. Invoicing and export arrangements depend on the transaction; confirm them with the supplier and your trade or tax adviser.

On your visit

Ask whether the price includes VAT, packaging and delivery to a named place, and which type of invoice you will receive.

Watch for

Comparing a tax-inclusive quote with a tax-exclusive one.

How the Product Is Made

OEM (Original Equipment Manufacturer)

代工 / 贴牌代工 (dàigōng / tiēpái dàigōng)

In sourcing discussions, manufacturing to a buyer’s specified design or requirements, often under the buyer’s brand. Usage varies by supplier and industry.

What to ask and check

Why it matters

Define who supplies the design, who may use it and who is responsible for each requirement. The OEM label alone does not settle those questions.

On your visit

Ask how the factory protects customer designs, who can access your files and whether it will sign a confidentiality agreement.

Watch for

Assuming the label OEM defines the design work, customisation or intellectual-property rights. Describe the actual scope in writing.

ODM (Original Design Manufacturer)

自主设计生产 (zìzhǔ shèjì shēngchǎn), commonly just "ODM"

In sourcing discussions, a manufacturer offers a design that a buyer can select and adapt. The available changes depend on the supplier and product.

What to ask and check

Why it matters

An existing design may reduce development work, but the base product may also be offered to other buyers.

On your visit

Ask what you can change, what exclusivity is possible and who owns the design.

Watch for

Assuming you own a design the factory developed.

Private Label

贴牌 (tiēpái)

Selling an existing product under your own brand name.

What to ask and check

Why it matters

It can reduce development work when an existing product meets your needs, but may offer limited differentiation.

On your visit

Ask whether the factory can change packaging, materials or small features beyond the logo, and how many other buyers sell the same product.

Watch for

Believing a private label product is exclusive.

What Can Go Wrong

Not as Sampled

货不对板 (huò bù duì bǎn)

Bulk goods that do not match the approved sample or description.

What to ask and check

Why it matters

A mismatch can lead to a dispute, especially when the approved reference and written requirements are unclear.

On your visit

Agree a written specification, a signed golden sample and an inspection plan before production starts.

Watch for

Discovering the difference only after the goods arrive.

SOURCES & USAGE

Use the term. Confirm the details.

These are practical sourcing explanations, not legal definitions or inspection instructions. Supplier terminology varies; record the scope, evidence and acceptance criteria that apply to your order.

National Unified Social Credit Code service centre: the 18-character entity identifier.
National Enterprise Credit Information Publicity System: a company-record lookup resource. Access may require verification.
QIMA: pre-shipment inspection: inspection scope and readiness. Confirm the plan with your inspection provider.

Sources reviewed 15 October 2026. Holiday closures, quote inclusions, inspection thresholds and access arrangements must be confirmed for each supplier and order. OEM and ODM are commercial labels; they do not establish design ownership.