Sourcing in China for China – Standard Terms and Conditions for Chinese Purchase Orders

September 8, 2009 at 8:00 am

As China becomes a bigger player in the global marketplace and the Chinese and American economies become further intertwined, many American firms find themselves operating inside China. These operations often source raw materials, components, and other goods and services within China.

Firms in this position are well aware of problems that can spring up in these sourcing relationships. Conventional wisdom about China is rife with anecdotes about quality control failures, intellectual property infringements, and supply interruptions. Purchasers within China know that they need to take steps to protect their interests. But the playing field is different. U.S. companies operating in China are often much less familiar with Chinese laws associated with commercial contracts than they are with their U.S. counterparts.

This article briefly considers some important issues for inclusion in a standard set of terms and conditions that would accompany a purchase order agreement between a U.S.-owned Chinese facility and its Chinese suppliers (J. J. Dehner, M. P. Forgue, Frost, Brown, Todd, LLC)

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Entry filed under: Asia, Business to Business, China.

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