China Business, Law & Sourcing Library

Format:  25 Page Whitepaper

Status:   Available in March 2021

Recommended Prerequisite:  China Sourcing 101

Important Note:  This tutorial assumes the viewer is looking to establish a factory-direct relationship.  If you are worried your order size may be too small to meet the MOQ (minimum order quality) of a Chinese factory, then you may want to watch my mini-course covering “strategies for small volume orders”.

Content: Finding “a supplier” is easy. But finding “the best supplier” for your particular mix of price, quality & lead time (not to mention security of intellectual property) requires a plan.

This tutorial will expand upon the concepts introduced in the 100 level courses by offering specific tips, checklists and templates to help you successfully:

• Organize an efficient RFQ (Request for Quotation)
• Negotiate factory-direct pricing
• Verify the short-listed suppliers from 3 perspectives:

1. Business Assessment: How to determine if they are a legit business (solid financial position, no outstanding lawsuits & such) likely to be a long-term partner for you?
2. Transactional Due Diligence: How to spot red flags in the deal
3. Quality Audit: How to make sure they have the QC systems in place to actually make the products they say they do.

Format:  85 Minute Video

Status:   Available Now/ On-Demand

Prerequisites:  China Sourcing 101 and Chinese Courts 102

Contents:

Introduction

China Contracts: Essential Terms & Considerations

1. Crafting an Effective Penalty Clause
2. Controlling Unauthorized Sub-contracting & Outsourcing
3. Official Language
4. Reference Samples: Defining the Standard

5&6. Supply Chain Insurance

• Product Liability
• Comprehensive Insurance

7. Warranty Considerations & Defect Management
8. Clarify Intellectual Property Rights
9. The Chinese View of “Force Majeure”
10. Handling Official Receipts/ Value Added Tax
11. Selecting Jurisdiction
12. Template: Vendor Code of Conduct
13. Template: Preventing Unauthorized Changes
14. Random Inspections and Representative Sampling
15. “Binding Signature” is a “Chop”
16. NNN in the new NDA
17. Special Concerns: Opening Molds, Tool & Dies
18. Beware of “Payment Against Documents”
19. Importance of using corporate e-mail addresses
20. Protecting Staff: A “No Poaching” Template

Format:  15 Page Whitepaper

Status:   Available in April 2021

Prerequisites:  China Sourcing 101 and Chinese Courts 102

Contents: 

Introduction:

Scam, Bad Supplier or Unsafe Buyer?

Avoiding Scams:

• What types of international buyers are targeted by scam artists?
• What types of product categories are more prone to scams?
• Red Flags in the communications
• Red Flags in the business
• Red Flags in the transaction
• Analysis of the 6 most common scams:
  • Trading company masquerading as a factory
  • Disappearing Deposit
  • Empty Box
  • Famous Brand-Factory Direct
  • Send more money to release the order
  • Hijacked Payment
• What are the options if you have fallen victim of a scam?

Avoiding Bad Suppliers:

• Red Flags: Buy Side
• Red Flags: Sell Side
• Free “DIY” Due Diligence
• China Due Diligence Providers (Fees & Coverage)
• Case Study: How to discourage good suppliers from going bad
• Nasty tricks used by bad suppliers:
  • Hijacking Intellectual Property
  • Hidden Charges
  • Hong Kong Money Hole
  • De-commitments on price, quality and lead-time
  • “Chinese Equivalent” Materials
  • Bribing the Buyer’s Rep
  • Kidnapping the Buyer
  • Hijacked Payment 2.0
• What are the options for victims of a bad suppliers?

Format:  15 Page Whitepaper

Status:   Available in May 2021

Prerequisites:  China Sourcing 101 & Chinese Courts 102

Contents: This short course will offer practical tips & effective strategies used by foreign firms to recover losses caused by Chinese suppliers. Topics include:

• Determining the strength of your case under Chinese law
• Pros & cons of police action, demand letters, legal action & collection agents
• American tactics that actually weaken your demand letter to a Chinese company
• When to give up home team advantage- An inside look at why you are probably better off fighting the battle in the Chinese courts
• How to reduce the costs associated with a court battle in China
• Collecting intelligence on the target entity
• How to apply pressure outside of court and bring a Chinese company back to the negotiation table
• Avoid getting kidnaped: It’s a serious risk in China.
• Tips for Very Tricky Situations:
  • Resolving disputes with an active supplier that has product you still need?
  • Can I still win in China if I don’t have a signed contract?

Format:  12 Minute Video

Status:   Available Now/ On-Demand

Prerequisites:  Chinese Courts 102

Content: During my 20 years living in Asia, I’ve dealt with judges and lawyers in Mainland China, attorneys back home in the US and lawyers in Hong Kong too. In this tutorial, I will share the 4 steps I use to select the right lawyer for my projects.  We’ll cover:

1. Step One: Home or Away?
   - - - Deciding where to fight the battle. It’s not as easy as you may think.

2. Step Two: Finding an Attorney
   - - - What questions to ask to make sure you have right lawyer.

4. Step Three: Service Agreements with Law Firms
   - - - How to set up a solid service agreement with the lawyer so that you are protected. 
5. Step Four: Negotiating Fees
   - - - Ways to ensure you are not over paying attorney fees, court fees and project expenses.

Even if you aren’t planning on engaging AsiaBridge Law, you will find this short tutorial of value.