Negotiating with Chinese Suppliers: Contract Clauses That Protect Foreign Buyers
Foreign buyers sourcing from China should lock in specifications, inspection, payment, subcontracting, tooling, and dispute clauses before placing orders.
Foreign buyers sourcing from China should lock in specifications, inspection, payment, subcontracting, tooling, and dispute clauses before placing orders.
A China distribution agreement should do more than appoint a distributor. Foreign companies need workable terms on territory, exclusivity, pricing boundaries, intellectual property control, payment evidence, compliance, and exit.
In China, the company seal is the company. A contract signed by the wrong person or stamped with the wrong seal can be unenforceable. A practical protocol for foreign companies: identity verification, seal comparison, in-person execution, and archiving.
Real cases from Chinese procurement disputes: ‘deemed acceptance’ clauses, full prepayment traps, and unlimited buyer liability. How to negotiate supplier contracts that actually protect you.