Confidentiality/Non-Compete

Get parties to sign a confidentiality/non-compete agreement before you even have informal talks — you don’t want to inspire the Chinese party to go off and do the same business that you do!

In addition to all potential suppliers and other partners, the following people should sign confidentiality/non-compete agreements:

All employees
If you’re doing a JV, all your partner’s employees who’ll be involved in working for the JV

If you’re planning on providing any valuable technical information to a Chinese supplier, you may consider doing due diligence to see whether their employees are bound by confidentiality/non-competes. We discuss these issues in Chapter 17.

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