What to check before appointing a China distributor or manufacturer.
A foreign company usually sees the commercial opportunity first. The legal question is more practical: is the local counterparty the right one to trust with territory, pricing, tooling, confidential materials, and customer-facing brand use?
1. Confirm the exact Chinese legal entity
Marketing names and operating labels are not enough. The contract, the invoice, and any filing-sensitive work should be tied to the exact Chinese legal entity that will really perform the work.
2. Check what leverage the counterparty will gain on day one
A distributor may control pricing, customer introductions, local sales messaging, or payment collection. A manufacturer may control tooling, drawings, packaging, or production continuity. That leverage should be visible before the contract is signed.
3. Protect the brand and the confidential path together
Trademark timing, Chinese-language branding, NNN documents, and distribution or manufacturing terms usually need to be aligned. A weak link in one of those documents can undercut the others.
4. Match the findings to the contract and the exit plan
A good review should do more than list risks. It should show which risks need clearer payment terms, brand-use restrictions, sales obligations, tooling ownership language, data controls, or exit rights.
Documents to prepare
- The Chinese legal name of the distributor or manufacturer.
- The draft contract, term sheet, or key commercial terms.
- The intended territory, product list, and payment path.
- Any trademark filings, NNN drafts, tooling terms, or packaging materials already shared.