Factory audits in China: production capacity, working conditions and subcontracting
Before commissioning an audit, define the decision you need to make. Checking a factory's capability, reviewing working conditions and verifying an order are different assignments.
Updated: 16 September 2026
Written by the EC HolaHome team as operational guidance for defining and coordinating supplier reviews in China.
In short
Identify the company and plant that will manufacture, agree the checks and use the report to decide what must be resolved before production.
1. Choose the right type of check
Asking for an “audited factory” is not enough. A report may cover different issues from those that matter for your product.
Activities, decisions and limitations
Activity
Question it answers
Limitation
Documentary or remote review
Are the identity and evidence provided consistent?
It is not equivalent to physically verifying facilities.
Technical or capability audit
Does this plant have suitable processes and controls for the order?
It does not by itself validate all future production.
Social audit
What working and safety conditions are observed within the scope?
It does not demonstrate technical capability for your product.
Product inspection
Does the sample or batch meet the agreed criteria?
It does not replace factory assessment or applicable testing.
QIMA distinguishes evaluating facilities, capabilities and quality systems from inspecting the product. These activities complement each other.
SMETA is Sedex's social audit methodology and records findings and corrective actions; it is not a certification and does not provide a universal pass or fail. An assignment may cover labour, health and safety and, depending on its scope, environment and business ethics. SMETA audits are carried out by Sedex-authorised audit companies.
Ask for the legal company name, manufacturing address and an explanation of who sells, who manufactures and which operations take place at each site. A trading entity being different from the factory is not in itself a problem, but its role should be explained.
Address and site covered by the review.
Planned process for the product reference.
Relevant equipment, maintenance and calibration where applicable.
Incoming, in-process and finished-product controls.
Batch traceability and non-conformity management.
Declared external stages.
Relate machinery and processes to the actual order specification. Ask which resources will be available on the planned dates, which stages are in-house and which are external. A video of machines running does not by itself confirm that capacity will be reserved for your operation.
Select technical evidence according to the product, process, risk and agreed scope. It may include relevant equipment and processes, maintenance records, and current calibration where a measurement requires it; this is not a universal list of obligations and these checks are not automatically included in every review.
Where relevant, check how incoming materials and components, work in progress and finished products are controlled. Ask for an example that traces a batch from its materials to the finished result, and a non-conformity record showing the corrective action taken.
Subcontracting is not always inappropriate. Risk increases when the manufacturing location or process changes without information or agreement.
Before ordering, record the planned sites, subcontracted stages and which changes of plant or stage require prior approval. Where moulds or tooling exist, also agree how they will be identified and where they will be located. Ask for any change to include enough information to assess its impact.
Where appropriate, check the declared site and batch traceability against production evidence and the agreed verification activities. If a relevant point cannot be checked, the report should record that limitation. A one-off visit does not guarantee that no later changes will occur.
4. Read the report before deciding
Check the date, issuing entity, audited address, scope and documents reviewed. A logo or report cover is not enough. Request the version that relates to the plant and work you need to assess.
Separate observations, evidence and unverified points. For each relevant issue, agree an owner, action, date and closing evidence. Decide what prevents progress, what can be resolved before production and what needs follow-up.
Do not assume an old report still represents the plant if facilities, processes or managers have changed. Whether a new review is needed depends on those changes and the project's risk.
5. Prepare a useful audit request
Define the decision the work must support and provide enough information to agree a proportionate scope.
EC HolaHome can help you organise these requirements and coordinate the agreed activity with the factory and the relevant professionals. A documentary review, a visit, an inspection and a formal audit are defined separately in the proposal.
Before commissioning
Audit scope checklist
Six points so the report answers the pending decision.
Available product and specification.
Supplier and plant to be reviewed.
Quantities and target dates.
Questions that must be resolved.
Type and scope of review, and who performs it.
Agreed report, evidence and follow-up.
FAQ
Common questions about factory audits
Can a social audit approve a manufacturer?
It provides information within its own scope. You still need to assess the plant's capability and the specific requirements of the order.
Do I need a new audit for every order?
It depends on changes at the plant, supplier history, project risk and how current the evidence is. There is no automatic rule for every order.
Review scope
The proposal identifies the plant, the checks, the person responsible and the evidence to be delivered. Unverified points must be recorded in the report.
What do you need to check about your supplier?
Tell us about the product, the supplier and the pending decision. We will help you define a review proportionate to your operation.
