Chinese factory closed: what happens to my order?
Pause further payments and independently check the factory and your goods. Map the deposit, usable stock, tooling and production files, then start replacement sourcing without assuming anything can be recovered. Give customers only verified delivery updates. China-side checks can be coordinated by Cambridge China Bridge.
Establish what has actually stopped
An unanswered phone or locked gate does not establish permanent closure. Commission an independent site visit where access is possible, check the actual production address, and contact the warehouse and any known subcontractor directly. Ask whether work has stopped temporarily, moved elsewhere or ended. Record dated observations, who supplied each statement and what remains unverified.
Keep the closure assessment separate from the order assessment. A factory may have stopped while finished cartons remain at another warehouse. Request an order-specific inventory supported by current photographs, carton markings and inspection evidence. For the immediate payment and record-preservation steps, use supplier stopped replying and kept your deposit.
Map money and goods separately
Build a recovery worksheet from payment confirmations, invoices and production records. Record each payment recipient, amount, currency and stated purpose. Match claimed spending to identifiable materials or production wherever evidence exists. Keep confirmed expenditure, supplier claims and unexplained funds separate. A deposit receipt does not establish how much usable stock exists.
For every goods entry, record quantity, completion stage, condition, location, custodian and access status. Ask who can authorise inspection and collection, and obtain written release arrangements before booking transport. Do not count stock as available merely because someone says it is yours. Keep anticipated refunds outside the replacement budget until received.
| Item | Evidence to obtain | Planning treatment |
|---|---|---|
| Deposit | Payment record, recipient and any confirmed refund | Treat unrecovered money as unavailable |
| Finished goods | Inspection, identified cartons and confirmed release arrangements | Plan shipment only after acceptance and release |
| Unfinished goods and materials | Count, condition, specification and receiving factory assessment | Separate reusable items from scrap or unknown stock |
| Tooling and production files | Location, condition, file versions and confirmed access | Assess transfer against rebuilding |
Recover the production brief
Assemble approved samples, drawings, BOM, material specifications, colour references, packaging artwork, inspection criteria and test reports. Record the approved revision and unresolved changes. Ask laboratories and known component suppliers directly for records they can provide; do not depend on the closed factory's email account remaining accessible.
For moulds, jigs and fixtures, obtain identification marks, photographs, condition reports and a list of missing accessories. Ask a prospective replacement factory to assess compatibility before arranging movement. Record permissions to use files and tooling, and any disputed access, rather than assuming payment guarantees transfer. See protecting your IP and tooling.
Start replacement sourcing while checks continue
Issue a replacement brief using the approved specification. Ask candidates to quote both completion using verified recoverable items and manufacture from scratch. Compare material availability, tooling work, sample approval, inspection, packing and freight. Identify what each proposed schedule depends on. Do not pay a new deposit against an unverified promise that the old factory's goods will arrive.
Approve a replacement sample against the retained reference before bulk production. For UK sales, you must be able to demonstrate that imported products meet applicable regulations and safety requirements before placing them on the market. Check whether existing test evidence covers the replacement configuration; ask the laboratory about gaps. Use qualifying a second supplier for the wider qualification process.
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Communicate verified delivery consequences
Tell affected customers which order lines are at risk, what has been checked and what remains unknown. Distinguish an estimate from a confirmed dispatch or delivery commitment. Build revised dates from material availability, approved samples, production allocation, inspection and transport evidence. If those inputs remain unresolved, give the next update point instead of inventing a delivery date.
Offer partial supply or an alternative product only after checking availability and obtaining customer approval. Keep a change log covering specification, quantity, cost and delivery decisions. Cambridge China Bridge's own staff in China can coordinate site checks and replacement sourcing through our supplier problems service; access, goods recovery and delivery remain subject to verification.
Frequently asked questions
How do I know whether my Chinese factory has closed?
Arrange an independent site check and contact known warehouses or subcontractors directly. Record observed facts separately from claims. Silence or a locked gate alone does not establish permanent closure.
Can I collect goods after the factory closes?
First verify the goods, their condition, location and custodian. Obtain confirmed inspection access and written release arrangements before booking collection. Do not assume a deposit makes the stock available.
Can another factory finish my unfinished order?
Possibly. Give it the approved specification and verified inventory, then ask it to assess compatibility and condition. Compare finishing the existing goods with starting again before committing.
What should I tell customers about the delay?
State the affected products, verified status, unresolved dependencies and next update point. Give a revised delivery commitment only when production and transport evidence support it.