Distribution in China – Legal Issues, Part II. Distribution System Design

By on February 21, 2013

Contact: Frank Schoneveld, Kevin Qian, John Huang and Winston Zhao

“Distribution in China – Legal Issues” is a four-part series.  Part I discussed the business models and legal structures most commonly used for distribution in China.  Part II looks at important issues to consider in the design of a distribution system for China, such as taxation, foreign exchange, antitrust, and specific rules applicable to retail and wholesale distribution activities.  Part III will deal with pre-contract matters of which negotiators of distribution agreements for China should be aware.  Part IV will outline the main issues parties should take into account when drafting a distribution contract for use in China.  These include pricing and payments, exclusivity and territorial restrictions, product liability and intellectual property rights.

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