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China Cracks Down on Fake Testing Certificates in Traditional Crafts: What Foreign Founders Need to Know

China's market regulator has opened a reporting channel for fake testing reports and certificates in traditional craft markets. For foreign founders, this signals tighter compliance expectations for product certification and marketing claims—here's how to align your China entity.

Key Takeaways for Foreign Founders

China's State Administration for Market Regulation (SAMR) has launched a reporting channel targeting counterfeit testing reports and certificates in the traditional crafts market, covering jewelry, precious metal ornaments, mahogany products, and ceramics. For foreign founders, this is a compliance reminder: if your China company trades, imports, or markets such goods, you must ensure your testing documentation is genuine and your marketing claims are accurate. The move also underscores the importance of verifying supplier credentials and avoiding keywords that imply unverified certification.

What the Reporting Scope Covers

The reporting scope identifies four main categories of violations:

• Fake testing reports and certificates: “Black workshops,” “black dens,” and “black intermediaries” that forge testing reports or inspection certificates for traditional crafts.
• Misuse by producers and sellers: Forging, altering, misappropriating, or trading testing reports or certificates; using false reports; passing off inferior goods as superior; and engaging in false marketing.
• Testing机构 violations: Testing institutions that operate beyond their accredited scope or issue false or seriously inaccurate reports.
• Online platforms and operators: E-commerce and livestreaming platforms that create fake websites, links, or accounts to offer false testing institutions, certificates, or reports; and unauthorized use of keywords such as “testing,” “CMA,” “CNAS,” “guaranteed pass,” “no sample submission,” “exemption from inspection,” and “direct certificate issuance” in search and promotion.

Why This Matters for Your China Company Registration

When setting up a company in China, the scope of your business activities determines the licenses and permits required. If your entity will engage in the production, sale, or import/export of jewelry, precious metals, mahogany, or ceramics, you may need to obtain specific business scope approvals and comply with product quality and certification rules. The SAMR's reporting channel signals that regulators are actively monitoring these sectors, so ensuring your business scope accurately reflects your activities and that you have proper testing arrangements in place is critical from the start.

Foreign founders should also be aware that testing reports and certificates used in China must come from qualified institutions. If your products require testing (e.g., for material authenticity or safety), you must use accredited laboratories and retain valid reports. Using unverified reports or claiming certifications you don't have can lead to penalties and damage your company's reputation.

Compliance Steps for Foreign-Founded Entities

1. Verify Supplier and Partner Credentials

Before sourcing from Chinese suppliers, request copies of their business licenses, testing reports, and certificates. Cross-check that testing institutions are accredited and that reports are issued within their scope. Avoid suppliers who offer “guaranteed pass” or “no sample” testing—these are red flags highlighted by SAMR.

2. Ensure Accurate Marketing Claims

When marketing your products online or via livestreaming, avoid using terms like “CMA,” “CNAS,” or “testing” unless you have genuine certification. Chinese advertising and e-commerce regulations prohibit false or misleading claims. Work with your China entity's marketing team to review all promotional materials for compliance.

3. Maintain Proper Documentation

Keep records of testing reports, certificates, and supplier agreements. If your China company is audited or investigated, having organized documentation can demonstrate compliance and mitigate risks.

4. Report Suspected Violations

If you encounter fake testing reports or certificates in your supply chain, you can report them through the official channels: email [email protected] or phone 010-88651775 (weekdays 9:00-11:30, 14:00-17:00). Reports can also be made via the 12315 platform or hotline to local market regulation departments. While reporting is not mandatory, it helps protect your business and the market's integrity.

How to Register a China Company with These Rules in Mind

When choosing your entity type (e.g., wholly foreign-owned enterprise, joint venture), consider the scope of activities. For trading in regulated goods, a limited liability company with the appropriate business scope is common. During registration, you'll need to submit documents such as your passport, proof of address, and the articles of association. If your business involves product testing, you may need to provide additional information about your quality control processes. Capital requirements depend on the entity type and industry; consult a professional for guidance. After registration, ensure you obtain any necessary licenses (e.g., for import/export) and register with the tax authorities.

The SAMR's reporting channel is not a new registration requirement, but it reflects increased enforcement. Foreign founders should build compliance into their operations from day one—this includes verifying testing reports and avoiding false marketing. By doing so, you reduce the risk of penalties and build trust with Chinese consumers and partners.

Practical Tips for Ongoing Operations

• Train your team: Educate staff on the importance of genuine testing reports and the risks of using fake certificates.
• Audit your supply chain: Periodically review suppliers' testing documentation and certification status.
• Stay informed: Follow SAMR announcements for updates on compliance requirements.
• Use official channels: If in doubt about a testing institution's validity, check with SAMR or accredited bodies.

This summary is based on information published by the relevant Chinese government website and is general information, not legal or tax advice.

For assistance with registering and operating a company in China, foreign founders can contact ChinaMNC on WhatsApp / WeChat at +86 153 1898 8535.