Basic China Manufacturing “Advice”

My response was as follows:

My advice is if you are not paying in advance, you do some combination of the following:

Chinese Company Reputational Reports: You should have a due diligence report done on each company to which you will be sending money, before you send the money. You can find out about our due diligence reports here.

NNN Agreements. Depending on the specifics of your product and your business, you likely will need an NNN Agreement. These protect against your Chinese manufacturing disclosing your confidential information, using your information or your product, and going directly to your customers.

Manufacturing Agreements.  Without this, you’re vulnerable to issues like poor product quality, late deliveries, and paying for something and getting nothing at all. You can read more about these here.

China Trademarks. If your product involves branding, it’s essential to protect your trademarks in China, even if all of your product sales are outside China. See Manufacturing in China: Trademark Registration Should be the First Thing You Do.

Tariffs: It’s essential you understand the tariffs and duties associated with importing your particular product into the US and the EU, and that you explore strategies for potentially reducing (or even eliminating) those tariffs and duties.

If you have any additional questions, please don’t hesitate to reach back out.