Cross-Border Due Diligence

Supplier verification, partner assessment and investment-target evaluation. On-the-ground checks, beneficial-ownership tracing, regulatory exposure, operational reality testing.

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Why this matters

Most cross-border problems we see at Thornfield could have been avoided by twenty hours of structured due diligence at the right moment. The supplier that quoted aggressively turned out to be a trading shell with no factory. The "joint-venture partner" had a litigation history hidden behind two layers of holding companies. The investment target's headline revenue was real, but the customer concentration was a single relationship that ended a quarter after closing.

Due diligence on Chinese counterparties is doable. It needs the right combination of public-records work, Chinese-language search, on-the-ground physical verification, structured interviews, and operating judgement. We do all of it, and we deliver findings in plain English with a clear go / no-go / conditional recommendation.

Engagement types

Supplier verification

For manufacturing clients considering or already buying from a Chinese supplier. Covers entity verification, factory existence and capacity, quality system reality, key customer concentration, environmental and regulatory compliance, and operational sustainability.

Partner assessment

For brands and businesses entering a distribution, licensing or joint-venture arrangement with a Chinese counterparty. Covers beneficial-ownership and group-structure mapping, financial reality testing, related-party transaction review, key-person background, and conflict-of-interest screening.

Investment-target evaluation

For investment firms, family offices and corporate development teams evaluating a Chinese target — equity or asset. Pre-LOI desktop review, full pre-signing diligence, and confirmatory diligence between signing and closing. Coordinated with legal, financial and technical advisors.

What is included

Turnaround and scope

A standard supplier verification runs three to five weeks. A partner assessment for a joint-venture arrangement runs six to ten weeks. An investment-target diligence is project-scoped against transaction timeline. Expedited turnaround is available for time-critical decisions.

Frequently Asked Questions

How do you verify that a factory actually exists?
Physical visit by an in-country contact: photographs of the gate, signage and equipment; observation of shift activity; verification of vehicle and people movement consistent with claimed capacity; informal interviews with workforce where appropriate. We do not rely on documentation alone.
Can you uncover hidden ownership?
To a degree that satisfies most decisions, yes. Chinese corporate registries publish equity-chain data that can be traced upward through holding companies. Where offshore layers (HK, BVI, Cayman) exist we use specialist registry partners. Truly opaque structures — typically used by sanctioned or criminal actors — are flagged as a red signal in their own right.
Is this legal? Some China DD providers have had issues recently.
Yes. Our work uses public records, lawful site visits, voluntary interviews and open-source media. We do not access non-public corporate data, do not pay for confidential information, and decline engagements that would require operating outside normal commercial diligence boundaries. Where appropriate we coordinate with Chinese-licensed counsel.
What does a clean diligence look like?
A clean report still names risks — every Chinese counterparty carries some — but concludes the risks are manageable, identifies them clearly, and recommends specific contract or operating safeguards. A genuinely clean target is rare; a clean target with managed risk is the realistic outcome.
Can findings be used in court?
Our reports are commercial diligence products, not litigation evidence. Where findings need to be admissible in court or arbitration we work alongside specialist forensic-investigations firms and law firms that can structure the evidence accordingly.

Talk to Sarah Liu

A 30-minute confidential call is the best place to start. No charge for the initial discussion, no obligation to proceed.

Email info@thornfieldres.co.uk