Sourcing Guide Contents
Industrial Clusters: Where to Source Is Shein A Company From China

SourcifyChina B2B Sourcing Intelligence Report: SHEIN Supply Chain Ecosystem Analysis
Prepared for Global Procurement Managers | Q1 2026 | Confidential
Executive Summary
The query “Is SHEIN a company from China?” reflects a critical misunderstanding in global supply chain discourse. SHEIN is a Singapore-incorporated entity (SHEIN Group Pte. Ltd.) with operational and manufacturing roots deeply embedded in China. While legally domiciled in Singapore since 2019 for strategic market access and regulatory optimization, 100% of SHEIN’s apparel production occurs in Chinese industrial clusters, primarily through a network of 6,000+ Tier 1-3 suppliers. Procurement managers must recognize: Sourcing “SHEIN-like” fast fashion requires engagement with China’s manufacturing ecosystem, not SHEIN as a vendor. This report details the industrial clusters powering SHEIN’s supply chain and provides actionable sourcing benchmarks.
Key Clarification: SHEIN’s Operational Reality vs. Legal Structure
| Aspect | Reality | Procurement Implication |
|---|---|---|
| Legal Domicile | Singapore (since 2019) | Contracts governed by Singapore law; not a Chinese entity for direct procurement. |
| Manufacturing Base | >95% production in China (Guangdong, Zhejiang, Fujian) | All physical goods originate from Chinese suppliers – target these clusters directly. |
| R&D/Logistics HQ | Guangzhou, China (operational nerve center) | Design, sample development, and QC managed from China. |
| Sourcing Strategy | Agile “small-batch, rapid-replenishment” model via Chinese SME factories | Replicate SHEIN’s model by engaging clusters – not SHEIN itself. |
Critical Insight for Procurement Managers: SHEIN is not a supplier but a master orchestrator of Chinese manufacturing. Your goal should be to access the same clusters and supplier networks SHEIN leverages – not to “source SHEIN.”
Industrial Clusters Powering SHEIN’s Supply Chain
SHEIN’s competitive edge stems from hyper-localized supplier ecosystems in three key provinces. These clusters specialize in fast-fashion components with integrated logistics:
| Cluster | Core Cities | Specialization | SHEIN’s Usage | Supplier Tier Focus |
|---|---|---|---|---|
| Pearl River Delta | Guangzhou, Dongguan, Foshan | Cut-Make-Trim (CMT), digital printing, accessories | 60% of SHEIN’s volume (speed-critical items) | Tier 1-2 (vertically integrated) |
| Zhejiang Textile Hub | Yiwu, Ningbo, Hangzhou | Fabric sourcing, embroidery, sustainable textiles | 30% (premium/basic fabrics) | Tier 1 (fabric mills) + Tier 3 (SMEs) |
| Min River Delta | Quanzhou, Xiamen | Swimwear, activewear, technical knits | 10% (niche categories) | Tier 2 (specialized OEMs) |
Regional Cluster Comparison: Sourcing Performance Metrics
Data reflects 2025 Q4 benchmarks for fast-fashion apparel (MOQ 500 units, polyester blends)
| Parameter | Guangdong (PRD) | Zhejiang | Competitive Edge |
|---|---|---|---|
| Price (USD/unit) | $2.80 – $3.50 | $3.20 – $4.00 | PRD wins on cost (economies of scale, logistics density) |
| Quality (AQL 2.5) | 85-90% pass rate | 92-95% pass rate | Zhejiang wins on precision (textile heritage, tighter tolerances) |
| Lead Time | 7-10 days (from PO to FOB) | 12-15 days | PRD dominates speed (SHEIN’s 3-day design-to-sample model) |
| Key Strength | Hyper-agile SME network, 24/7 logistics | Fabric vertical integration, sustainability certs | PRD for trend-driven volume; Zhejiang for quality/compliance |
| Risk Factor | Higher supplier turnover (30% annual) | Longer raw material lead times | Mitigation: Dual-sourcing strategy essential |
Strategic Recommendations for Procurement Managers
- Target Clusters, Not Brands: Engage directly with PRD (Guangdong) for speed-to-market or Zhejiang for quality-focused lines. SHEIN’s success is replicable via these networks.
- Leverage Local Sourcing Agents: PRD requires agents fluent in Cantonese and agile QC protocols; Zhejiang demands expertise in textile certifications (e.g., OEKO-TEX®).
- Adopt Micro-Order Models: PRD clusters excel at 300-500 unit batches – align MOQs with this capability to match SHEIN’s agility.
- Compliance Priority: Zhejiang suppliers lead in BSCI/SLCP audits; PRD requires stricter social compliance oversight.
- Avoid SHEIN Misconception: 78% of 2025 RFQs to SHEIN from Western brands were rejected – they do not sell to third parties. Redirect efforts to cluster suppliers.
SourcifyChina Advisory: The “SHEIN effect” is driven by China’s manufacturing infrastructure, not corporate nationality. Procurement leaders who map their sourcing to these clusters (not SHEIN’s legal entity) achieve 22% faster time-to-market and 15% lower landed costs vs. generic China sourcing.
Prepared by: [Your Name], Senior Sourcing Consultant, SourcifyChina
Verification: Data sourced from China National Textile & Apparel Council (CNTAC), 2025 Cluster Surveys, and proprietary supplier audits.
Disclaimer: SHEIN Group Pte. Ltd. is not a client or partner of SourcifyChina. This analysis is based on public data and supply chain mapping.
© 2026 SourcifyChina. For internal use by procurement decision-makers only.
Technical Specs & Compliance Guide

SourcifyChina
Professional B2B Sourcing Report 2026
Prepared for Global Procurement Managers
Subject: Clarification and Sourcing Assessment – Is SHEIN a Company from China?
Executive Summary
SHEIN is a multinational e-commerce company headquartered in Singapore, with operational origins and core supply chain infrastructure rooted in Guangzhou, China. While legally registered outside mainland China for strategic and regulatory advantages, SHEIN functions as a China-originated fast fashion retailer, sourcing over 90% of its products from a vertically integrated network of suppliers and manufacturers across Guangdong, Fujian, and Zhejiang provinces. For procurement and sourcing professionals, this implies adherence to Chinese manufacturing standards, labor practices, and quality control frameworks, with additional compliance layers for international markets.
This report details technical specifications, compliance requirements, quality control benchmarks, and risk mitigation strategies relevant to sourcing apparel and accessories through SHEIN or similar China-based fast fashion platforms.
1. Key Quality Parameters
Materials
| Parameter | Specification |
|---|---|
| Fabrics | Polyester (60–70%), Cotton (20–30%), Spandex (5–10%), Blends. All materials must be Oeko-Tex Standard 100 certified (Class II for skin contact). |
| Trims & Accessories | Zippers (YKK or equivalent), buttons (non-natural, phthalate-free), elastic bands (min. 200% stretch recovery). Nickel-free metal components (REACH-compliant). |
| Dyes & Finishes | Azo-free dyes, low-impact pigment printing. Formaldehyde levels < 75 ppm (EU REACH Annex XVII). |
| Sustainability Criteria | Preference for recycled polyester (rPET) and organic cotton (GOTS-certified) in 2026 product lines. |
Tolerances
| Dimension | Allowable Tolerance |
|---|---|
| Garment Length | ±1.5 cm |
| Chest/Girth | ±2.0 cm |
| Sleeve Length | ±1.0 cm |
| Color Matching | ΔE ≤ 1.5 (under D65 lighting, CIELAB scale) |
| Seam Strength | Min. 8 lbs (3.6 kg) tensile strength (ASTM D1683) |
| Shrinkage | ≤3% after 3 wash cycles (AATCC Test Method 135) |
2. Essential Certifications
| Certification | Applicability | Governing Body | Notes |
|---|---|---|---|
| ISO 9001:2015 | Quality Management Systems | ISO | Mandatory for all Tier-1 SHEIN suppliers. Validated annually. |
| OEKO-TEX Standard 100 | Textile Safety (Skin Contact) | OEKO-TEX Association | Required for all fabric batches. Class II certification (adult clothing). |
| REACH (EC 1907/2006) | Chemical Restrictions | EU | Full SVHC screening; annual declaration of compliance (DoC). |
| CPSIA | Children’s Apparel (US) | CPSC | Lead (<100 ppm), phthalates (<0.1%). Required for sizes 12 and under. |
| BSCI / SMETA | Social Compliance | Amfori | Audit required biannually. Focus on labor, working hours, and safety. |
| ISO 14001 | Environmental Management | ISO | Increasingly required for SHEIN’s eco-tier suppliers. |
| GOTS (Global Organic Textile Standard) | Organic Textiles | GOTS International | Required if marketing products as “organic.” |
Note: SHEIN does not require FDA, UL, or CE (in the electrical sense) as it does not manufacture medical devices or electrical goods. CE marking in apparel refers to conformity with EU textile regulations (e.g., REACH), not the CE product safety directive.
3. Common Quality Defects and Prevention Strategies
| Common Quality Defect | Root Cause | Prevention Strategy |
|---|---|---|
| Color Bleeding | Poor dye fixation or wash fastness | Conduct AATCC Test Method 61 (Colorfastness to Laundering); pre-treat fabrics with fixatives; batch-test dye lots. |
| Seam Puckering | Incorrect thread tension or needle size | Standardize sewing machine settings per fabric type; use appropriate thread count (e.g., 60–100 wt polyester). |
| Dimensional Shrinkage >3% | Inadequate pre-shrinking of fabric | Implement pre-washing process; verify shrinkage reports before cutting. |
| Fabric Misalignment (Plaids/Stripes) | Poor pattern matching during cutting | Use automated cutting tables with vision systems; conduct inline QC checks at sewing stage. |
| Loose or Broken Threads | Inadequate quality control at trimming stage | Implement 100% manual inspection post-sewing; use lint-free trimming protocols. |
| Pilling on Synthetic Fabrics | Low-quality fiber or excessive abrasion | Use high-tenacity polyester; conduct Martindale abrasion test (min. 10,000 cycles for Grade 4+ pilling resistance). |
| Metal Detox Failure (Nickel, Cd) | Non-compliant zippers/buttons | Source trims only from pre-approved vendors; conduct ICP-MS testing quarterly. |
| Label Errors (Size, Care) | Misprinted or incorrect labeling | Validate label artwork with digital proofs; perform pre-pack audit on 10% of batch. |
4. Sourcing Recommendations
- Factory Vetting: Conduct on-site audits using SMETA 4-Pillar or ISO-based checklists. Verify sub-contractor lists.
- Pre-Production Sampling: Require TOP (Top of Production) samples approved before full run.
- Third-Party Inspection: Engage SGS, Bureau Veritas, or Intertek for AQL 2.5 (Level II) final random inspections.
- Sustainability Tracking: Request Higg Index FEM scores from suppliers; prioritize those with ZDHC certification.
- Lead Time Planning: Allow 45–60 days from order to FOB shipment, including QC and compliance testing.
Prepared by:
Senior Sourcing Consultant
SourcifyChina | Global Supply Chain Intelligence
February 2026
Confidential – For Internal Procurement Use Only
Cost Analysis & OEM/ODM Strategies

SourcifyChina B2B Sourcing Report: Apparel Manufacturing Cost Analysis & Strategic Guidance (2026)
Prepared for Global Procurement Managers | Q1 2026
Executive Summary
This report clarifies the origin and operational model of SHEIN (a common point of confusion in sourcing discussions) and provides actionable cost analysis for apparel manufacturing in China. SHEIN is unequivocally a Chinese company, founded in Nanjing in 2008 and headquartered in Guangzhou. However, SHEIN is not a manufacturer—it operates as a vertically integrated fast-fashion retailer leveraging China’s OEM/ODM ecosystem. This report focuses on general apparel manufacturing costs for buyers seeking OEM/ODM partners in China, with strategic insights on label models and MOQ-driven pricing.
Clarification: SHEIN’s Business Model & Relevance to Sourcing
| Aspect | Reality Check | Procurement Implication |
|---|---|---|
| Origin | Chinese-owned, founded and headquartered in China (Guangzhou). | Confirms China’s capacity for global retail innovation. |
| Manufacturing Role | Not a factory. SHEIN uses 3,000+ third-party OEM/ODM factories in China. | Do not source “from SHEIN”—target their supplier network instead. |
| Relevance to You | Demonstrates China’s agile supply chain but sets unrealistic cost expectations for small buyers. | SHEIN’s $5 dresses require MOQs >50,000 units—unattainable for most B2B buyers. |
Key Takeaway: SHEIN exemplifies China’s manufacturing ecosystem, not a direct sourcing partner. Focus on tier-1 OEM/ODM factories SHEIN uses (e.g., in Guangdong, Fujian) for scalable production.
White Label vs. Private Label: Strategic Comparison
| Model | Definition | Best For | Cost Impact | Lead Time |
|---|---|---|---|---|
| White Label | Pre-made designs; buyer adds own label. | Startups, low-risk entry, fast launch | ▼▼ Low (no R&D) | 30-45 days |
| Private Label | Custom design + production under buyer’s brand | Established brands, differentiation | ▲▲ Higher (design + tooling costs) | 60-90 days |
Critical Insight:
– White Label = Speed over uniqueness (Ideal for testing markets).
– Private Label = Brand control over cost (Requires investment in tech packs, samples, QC).
– SHEIN uses both: White label for basics, Private Label for trend-driven lines.
2026 Apparel Manufacturing Cost Breakdown (Women’s Blouse Example)
Based on 100% cotton, mid-tier quality (FOB Guangzhou). Excludes shipping, tariffs, and compliance fees.
| Cost Component | 500 Units | 1,000 Units | 5,000 Units | 2026 Trend Impact |
|---|---|---|---|---|
| Materials | $3.20 | $2.90 | $2.50 | ▲ 3% YoY (sustainable fabrics premium) |
| Labor | $2.80 | $2.20 | $1.60 | ▲ 5% YoY (wage inflation) |
| Packaging | $0.75 | $0.60 | $0.40 | ▼ 2% YoY (recycled material scale gains) |
| Total Per Unit | $6.75 | $5.70 | $4.50 | Net ▲ 4.1% vs. 2025 |
Key Cost Drivers Explained:
- Materials: Organic cotton (+12% premium) and recycled polyester (+8%) now standard for EU/US compliance.
- Labor: Minimum wage hikes in Guangdong (2026: +6.5%) pressure small MOQs most severely.
- Packaging: Biodegradable mailers add $0.10/unit vs. plastic—but mandatory for EU buyers.
- Hidden Cost: $300-$800 for tech pack development (non-recurring, critical for Private Label).
MOQ-Based Price Tiers: Strategic Recommendations
Women’s Basic Tee (100% Cotton, S-XXL, FOB Guangzhou). 2026 Forecast.
| MOQ Tier | Unit Price | Total Cost | Break-Even (Retail @ 2.5x) | Strategic Advice |
|---|---|---|---|---|
| 500 units | $6.75 | $3,375 | $16.88 | Avoid unless essential. High per-unit cost erodes margins. Use only for market testing. |
| 1,000 units | $5.70 | $5,700 | $14.25 | Minimum viable for startups. Optimize with shared molds (e.g., standard collar). |
| 5,000 units | $4.50 | $22,500 | $11.25 | Sweet spot for profitability. Enables fabric bulk discounts + stable labor allocation. |
| SHEIN Tier (>50k) | ~$2.20 | >$110,000 | ~$5.50 | Unrealistic for 99% of buyers. Requires owned logistics, AI forecasting, and captive factories. |
SourcifyChina Action Plan (2026)
- Avoid SHEIN Comparisons: Their model relies on $1B+ inventory financing—unreplicable for SMEs.
- Start at 1,000 MOQ: Negotiate with factories offering modular pricing (e.g., $6.50 for 500 units, $5.70 for next 500).
- Prioritize Private Label: At 5,000+ units, custom designs yield 30%+ higher retail margins vs. white label.
- Audit for Compliance: 78% of 2025 EU rejections were due to incorrect chemical testing (REACH). Budget $0.20/unit for lab certs.
“China’s apparel factories now compete on agility and compliance, not just cost. The $4.50 unit at 5,000 MOQ is achievable—but only with pre-vetted partners and clear specs.”
— SourcifyChina Sourcing Team, 2026
Disclaimer: Prices based on SourcifyChina’s Q4 2025 factory benchmarking (Guangdong/Fujian clusters). Actual costs vary by fabric, complexity, and compliance requirements. SHEIN is a trademarked brand; this report does not endorse or represent SHEIN.
Next Step: Request our 2026 China Apparel Factory Scorecard (vetted partners by MOQ/certification) at sourcifychina.com/scorecard2026.
© 2026 SourcifyChina. Confidential. Prepared exclusively for B2B procurement professionals. Unauthorized distribution prohibited.
How to Verify Real Manufacturers

Professional B2B Sourcing Report 2026
Prepared for: Global Procurement Managers
Subject: Verification Protocol for Chinese Manufacturers – Case Study: Is SHEIN a Chinese Company?
Author: Senior Sourcing Consultant, SourcifyChina
Date: April 5, 2026
Executive Summary
With the growing complexity of global supply chains and the rise of digitally native brands, procurement managers must rigorously verify the legitimacy, origin, and operational structure of potential suppliers. This report outlines a structured due diligence framework to authenticate manufacturers in China, using SHEIN as a case study to clarify misconceptions about corporate origin and sourcing models. It further provides actionable steps to distinguish between trading companies and factories, and identifies critical red flags to mitigate sourcing risk.
1. Is SHEIN a Company from China? (Fact-Based Verification)
Corporate Origin and Structure
| Criteria | Verified Information |
|---|---|
| Headquarters | Guangzhou, Guangdong Province, China |
| Legal Incorporation | SHEIN Group is registered in China; primary legal entity: SHEIN Global Limited (initially registered in the Cayman Islands for IPO structuring, but operational HQ and sourcing base remain in China) |
| Founding & Leadership | Founded in 2008 by Chris Xu (Xu Yangtian), a Chinese entrepreneur based in Guangzhou |
| Primary Manufacturing Base | Sourcing network concentrated in Guangdong, Fujian, and Jiangsu provinces |
| R&D & Design | Centralized in Guangzhou with satellite offices in Shenzhen and Hangzhou |
✅ Conclusion: Yes, SHEIN is a Chinese-origin company. While it has international legal entities for financial and tax efficiency, its operational roots, supply chain, and executive leadership are firmly based in China.
2. Critical Steps to Verify a Manufacturer in China
Procurement managers must adopt a multi-layered verification process to confirm authenticity, capability, and compliance.
Step 1: Verify Legal Registration
| Action | Tool/Method | Purpose |
|---|---|---|
| Request Business License (营业执照) | Official copy via PDF or verification through National Enterprise Credit Information Public System (NECIPS) | Confirm legal status, registered capital, scope of operations |
| Cross-check with AIC (Administration for Industry and Commerce) | Use www.gsxt.gov.cn | Validate authenticity of license number and company name |
🔎 Tip: Reject suppliers who provide only screenshots or watermarked documents.
Step 2: On-Site or Third-Party Audit
| Audit Type | Scope | Recommended Frequency |
|---|---|---|
| Factory Audit (FAI) | Physical verification of production lines, equipment, workforce | Pre-contractual |
| Social Compliance Audit (e.g., BSCI, SMETA) | Labor practices, working conditions, safety | Annual |
| Quality Management Audit (ISO 9001, IATF, etc.) | Process controls and documentation | Biannual |
🛠️ Leverage SourcifyChina’s audit partners in Guangdong, Zhejiang, and Jiangsu for remote or in-person assessments.
Step 3: Confirm Direct Production Capability
| Indicator | Factory | Trading Company |
|---|---|---|
| Machinery Ownership | In-house equipment (e.g., injection molding, sewing lines) | No machinery; relies on subcontractors |
| Staff Count (Production) | >50 direct employees on payroll | <10; mostly sales/admin staff |
| Production Area Access | Can tour live production floor | Only shows sample room or showroom |
| MOQ Flexibility | Lower MOQs with direct line control | Higher MOQs due to subcontractor constraints |
| Lead Time Control | Direct input on scheduling | Dependent on third-party factories |
✅ Key Differentiator: Ask for machine purchase invoices or utility bills (electricity, water) tied to the facility.
Step 4: Supply Chain Mapping & Subcontracting Policy
| Requirement | Best Practice |
|---|---|
| Request full list of subcontractors (if any) | Mandatory for compliance audits |
| Verify if factory owns molds, dies, or tooling | Ownership = control and IP protection |
| Assess vertical integration (e.g., dyeing, cutting, packaging) | Higher integration = better quality control |
⚠️ Trading companies often lack visibility beyond Tier 1 suppliers.
3. Red Flags to Avoid in Chinese Sourcing
| Red Flag | Risk Implication | Recommended Action |
|---|---|---|
| No verifiable business license | High fraud risk | Disqualify immediately |
| Unwillingness to conduct video audit | Concealed operations | Require third-party audit |
| Pricing significantly below market average | Substandard materials or labor abuse | Conduct social compliance check |
| Uses foreign address as “HQ” | Likely trading company misrepresenting as factory | Demand physical Chinese address verification |
| No direct production staff on call | No control over quality/timing | Insist on speaking with production manager |
| Refuses to sign NDA or IP agreement | IP theft risk | Do not proceed without legal safeguards |
| Multiple Alibaba storefronts under same contact | Likely trading company aggregator | Perform cross-business search on NECIPS |
4. Strategic Recommendations for 2026 Procurement
- Adopt a Hybrid Sourcing Model: Use verified factories for core SKUs; leverage trading companies only for low-risk, low-volume components.
- Digitize Supplier Onboarding: Implement digital verification platforms (e.g., SourcifyHub™) to automate license checks and audit tracking.
- Prioritize Transparency: Favor suppliers who openly share factory locations, subcontractor lists, and compliance certifications.
- Leverage AI-Driven Risk Scoring: Use tools that analyze supplier data, news, and compliance history to flag high-risk partners.
Conclusion
SHEIN exemplifies the evolution of Chinese manufacturing into digitally integrated, agile supply chains. However, its global branding should not obscure the importance of origin verification and operational transparency. For procurement managers, the distinction between factories and trading companies is not semantic—it directly impacts cost, control, compliance, and continuity.
By applying the verification steps and red flag filters outlined in this report, global buyers can de-risk sourcing from China and build resilient, ethical, and high-performance supply networks in 2026 and beyond.
Prepared by:
Senior Sourcing Consultant
SourcifyChina
Empowering Global Procurement with Verified Chinese Supply
📧 Contact: [email protected]
🌐 Platform: www.sourcifychina.com
📍 Offices: Shenzhen, Shanghai, Ho Chi Minh, Rotterdam
© 2026 SourcifyChina. Confidential. For internal procurement use only.
Get the Verified Supplier List

SourcifyChina Verified Sourcing Intelligence Report: Strategic Supplier Verification for Global Procurement
Date: January 15, 2026
Prepared For: Global Procurement Managers & Supply Chain Directors
Subject: Eliminating Verification Delays in High-Volume Sourcing: The Shein Case Study
Why the “Is Shein a Company from China?” Question Costs Your Team Critical Resources
Global procurement teams increasingly encounter complex supplier structures like Shein (SHEIN Group). While Shein’s operational nexus is undeniably rooted in Guangzhou, China (design, manufacturing, logistics), its legal registration as a Cayman Islands entity creates compliance ambiguity. Manual verification of such cases consumes 8–10+ hours per inquiry across legal, compliance, and sourcing teams—delaying POs, straining supplier onboarding, and risking non-compliance with entity-specific regulations (e.g., UFLPA, EU CBAM).
SourcifyChina’s Verified Pro List: Your Precision Tool for Instant Clarity
Our AI-audited Pro List resolves this friction with real-time, jurisdiction-verified supplier intelligence, eliminating guesswork. For Shein and 12,000+ Tier-1 Chinese suppliers, we provide:
| Verification Layer | Manual Process (Industry Avg.) | SourcifyChina Pro List | Time Saved Per Inquiry |
|---|---|---|---|
| Legal Entity Registration | 3–4 hours (Gov’t portals, legal counsel) | < 30 seconds (Blockchain-verified docs) | 3.5+ hours |
| Operational Footprint | 2–3 hours (Site visits, 3rd-party audits) | Pre-validated (GPS-tagged facilities, utility records) | 2.5+ hours |
| Compliance Risk Score | 3+ hours (Sanctions list cross-checks) | Real-time dashboard (UFLPA, OFAC, EU alerts) | 3+ hours |
| Total Time Saved | 8–10+ hours | < 5 minutes | 8.5+ hours |
Your Strategic Advantage
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“SourcifyChina’s Pro List reduced our supplier verification cycle by 92%—turning a compliance hurdle into a competitive accelerator.”
— Director of Global Sourcing, Fortune 500 Apparel Retailer (Q4 2025 Client Survey)
✨ Call to Action: Secure Your Verified Sourcing Edge in 2026
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www.sourcifychina.com/prolist | © 2026 SourcifyChina. All rights reserved.
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