Audit Framework

China Factory Audit Checklist — 20-Point Inspection

A systematic 20-point framework for auditing Chinese factories, covering quality systems, production capacity, compliance, financial health, and working conditions. Built from 8,000+ real factory audits across 30+ manufacturing regions.

Overview

Why Audit Chinese Factories?

A factory audit is the most effective way to verify a supplier's capabilities before placing a significant order. Unlike a simple video tour, a structured audit produces a documented, scorecard-based evaluation you can compare across suppliers.

8,000+

Factory audits conducted

35-50%

of factories fail initial audit

80%+

Defect reduction with audited suppliers

2-4 hrs

Average on-site audit duration

📋 1. Business License & Legal Status

✓Company registered with State Administration for Market Regulation (SAMR)

✓Business license matches physical factory address

✓Registered capital adequate for production scale (¥1M+ for mid-size factories)

✓Valid export license (customs registration number)

✓No history of serious compliance violations in last 3 years

🏭 2. Production Capacity & Equipment

✓Factory floor area consistent with claimed production volume

✓Key production equipment present, operational, and maintained

✓Monthly production capacity matches your order volume

✓Current capacity utilization ≤ 80% (room for your order)

✓Equipment age and technology level assessed

🔬 3. Quality Management System

✓ISO 9001 certification (current, valid, verified)

✓In-line QC checkpoints at each production stage

✓Inspection measurement equipment calibrated (with records)

✓Raw material incoming inspection process documented

✓AQL sampling standards defined and used for final inspection

👥 4. Workforce & Management

✓Total headcount consistent with facility size and order volume

✓English-speaking export manager or sales team available

✓Worker training records and skill matrix available

✓Worker turnover rate reasonable (<30% annually for stable production)

✓Management team experience in your product category

🌱 5. Social Compliance & Working Conditions

✓Factory provides PPE (safety glasses, gloves, ear protection) as needed

✓Fire safety equipment (extinguishers, exits, alarms, sprinklers) present and inspected

✓Worker IDs checked (no underage labor — critical for compliance markets)

✓Work hours recorded and within legal limits (max 40 hrs + 36 hrs overtime/month)

✓Worker dormitory and canteen conditions acceptable if provided

Scoring

How to Score Factory Audits

Rate each item 1-5 (1=non-compliant, 3=adequate, 5=excellent). Calculate total across all 20 items for a 20-100 score. Use our Factory Comparison Matrix to compare suppliers side by side.

85-100

Approved Supplier

70-84

Conditional — Needs improvements

50-69

High risk — Re-audit in 6 months

<50

Rejected — Do not proceed

Need a Factory Audit in China?

ANJU's in-house audit team has conducted 8,000+ factory inspections across 30+ manufacturing regions. We'll audit your shortlisted suppliers and deliver detailed scorecards within 7 days.

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