Supplier Relationships

Handling original equipment manufacturing (OEM) contracts in China can be a bit of a minefield, especially for the new-to-China business. Stories of molds and design IP being ripped off and then sold by your own supplier are legendary. Here we provide a basic list of contractual issues to consider when entering into OEM agreements:

During the past 3 months, I traveled with a few clients to visit some Chinese suppliers of motors, pumps, valves and other industry supplies. As usual, we recommended the best local Chinese producers – their pricing levels were normally between Chinese-foreign joint ventures and local middle-sized and smaller producers, but their quality was acceptable for our clients.

Had a nice conversation with a potential client last week. Company has a great new product it wants made in China. Like many companies starting out in China, this one is in the process of shopping for its China lawyers and my firm was one of four suggested to it by its regular corporate counsel.

At a recent meeting of foreign businesspersons in Qingdao, I sat next to a very unhappy man who loudly stated: "Chinese contracts are not worth the paper they are written on."

One role of China's Supreme Court is to provide guidance on the interpretation of statutes. These interpretations are directed at two fundamental issues.

A couple weeks ago, a long time client of mine called me with a concern. This is a tech products company that has been doing business globally since forever and with China for at least five years.

By Diana in 'The China Sourcing Blog'

How to make a good enquiry

As a request for a quotation, an enquiry is an unavoidable stage in the sourcing work flow. A good enquiry should provide sufficient information for buyers to quote efficiently and accurately.