By Jamie Rowlands, John Chung

In this edition of our series on doing business in China, we discuss some issues to consider before a foreign seller (the “Seller”) enters into a distribution agreement with a Chinese party acting as the Seller’s distributor (the “Distributor”), to market and sell the Seller’s products and/or services on the Chinese market.

In the article, we have highlighted some issues to consider before signing distribution agreements with Chinese parties. You will also notice that some of the issues in our top 10 list may also apply generally to commercial contracts in general involving Chinese parties, including the need to be mindful of protecting one’s IPRs as well as discussions on indemnification and the effectiveness of liquidated damage provisions.