As an alternative, or supplement, to direct investment or establishment of an entity in China, various types of contracts (such as distribution contracts, agency contracts, franchise contracts (for distribution to China), supply contracts and processing contracts (for purchases from China) can also be used to set up business with Chinese customers or partners. For different business and industries, it is vital for foreign enterprises to select the correct contractual relationship in order to ensure that its products or services enter the Chinese market in a timely and efficient manner.

1. Distribution Contracts

Entering into a distribution contract with a Chinese entity is one of the ...

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