Tips for Negotiating and Dealing with your Suppliers in China (III): Original Equipment Manufacturing (OEM) Agreements

Are you sourcing your production from China? If you are, have you signed an OEM agreement with your suppliers? If so, is it good enough?

Today, I just want to recommend a few posts on this topic from the China Law Blog.  Last week they posted an article titled “Sourcing to China. A Tale of Two Companies” in which they give two real life examples on how good or bad your bargaining power can be depending on whether you signed a good OEM with your suppliers. I have heard a lot of business people talking about how often prices get a last minute hike or productions get delayed…and how little they can do about it…. Well, this post may show you that this should not necessarily be the case.

I also recommend you to go through the rest of the really good posts they have written on the topic (also mentioned in that same article), so that you can assess whether you have covered all the right points in your agreement:

http://www.chinalawblog.com/2010/04/china_oem_agreements_ten_thing.html

http://www.chinalawblog.com/2010/03/china_oem_agreements_you_are_n.html

And can read their advice on what language contracts should be signed in, or how to resolve disputes:

http://www.chinalawblog.com/2009/07/china_oem_agreements_we_like_o.html

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