China Business, Law & Sourcing Library
Course Key:
- 100 = Introductory Level
- 200 = Intermediate Level
- 300 = Advanced Level
- Even Number = Legal Issues in China
- Odd Number = China Sourcing Topic
The China Business, Law & Sourcing Library's white papers, video tutorials and mini-courses have been curated by AsiaBridge Law Advisory Board Member, Mike Bellamy on an exclusive basis.
About Mike
Originally from Upstate New York, Mike Bellamy moved to Asia in 1993 and is a China business advisor to both Fortune 500 companies and small businesses. Recognized as an expert on China sourcing, he has been interviewed by WSJ, CNBC, FT & Bloomberg.
A featured presenter on China business issues at seminars, trade shows and corporate events across the globe, Mike is the author of “The Essential Reference Guide to China Sourcing” (available on Amazon). (toggle arrow to read more)
Mike founded a boutique sourcing agency in China with 1 employee working out of his small apartment back in 2002. That business grew quickly and during their best year Mike’s team was responsible for managing a 200 million USD supply chain (per annum) of goods flowing from China to the world on behalf of his clients at the PassageMaker Group.
He received a double degree in Diplomacy and Economics from the American University in Washington DC and went on to gain an International MBA from the University of South Carolina. Mike spent two years as a Rotary Foundation Ambassadorial Scholar researching Japanese factory management & quality control in Tokyo and Osaka.
Before launching his business, Mike studied Chinese in Harbin & Beijing in the 1990’s. He currently spends Spring/Fall in Shenzhen, Winters in Thailand & Summers at the family cottage in the Finger Lakes region of New York State. Mike is married & has two daughters.
100 Level Courses
Format: 15 Minute Video
Status: Available Now/ On-Demand
Prerequisites: None
Contents: There are many “how to get rich” videos on the internet claiming to give you the secrets needed to pick magical products, that when imported, will make you millions when sold online.
Those videos focus almost exclusively on how to pick the right product and how to position that product on Amazon. But they skip over all the important stuff that happens in between those two steps. Leaving the viewers with the false assumption that picking the product is the hard part and the rest is easy.
In this mini-course, I am going to assume that you have already selected a great product and know how to sell that product online or via traditional distribution channels. That frees me up to focus on:
- Is your order size suitable for a factory-direct relationship?
- Supplier Selection & Verification
- A Simple Way to Negotiate Price
- Basic Contracts (PO vs Contract vs NNN)
- Quality Control: Factory Audits & Product Inspections
- Project Management
- Intellectual Property Protection
- Setting the Right Tone for Cooperation
This introductory short course will quickly get you up to speed on the essential issues that can’t be overlooked when buying products from China. Those issues will be explored in greater details in subsequent video tutorials found in this library.
Format: 15 Minute Video
Status: Available Now/ On-Demand
Prerequisites: None
Contents: Court Cases in China: 10 questions that will keep you awake at night
- How are the court & attorney fees in China?
- Can you sue a Chinese person or Chinese company in China?
- Does the loser pay the court fees in China?
- In China, can I sue for indirect damages?
- Is the winner able to collect punitive damages in China?
- What kind of testimony and types of evidence work best in a Chinese court?
- Do I need a signed contract to win?
- Can I freeze the assets of a Chinese company?
- How to collect compensation awarded by the court?
- When & how to bribe a judge in 2021?
200 Level Courses
Format: 30 Minute Video
Status: Available Now
Recommended Prerequisite: China Sourcing 101
Important Note on Target Audience: 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” (https://vimeo.com/522155488).
If you wish to buy a generic widget on Alibaba and resell it on Amazon, then this video is probably not the best fit.
But if you have a customized or highly-engineered product and are looking for a factory-direct relationship in China, then this video is for you!
Topics Covered:
How to find the right factory in China? Excerpts from Global Sources' interview with Mike Bellamy
Starts at 3:05 For people coming to China for the first time, what does it take to find quality manufacturers and how can they determine they are getting a fair deal?
Starts at 7:46 Does making complicated new electronic products introduce a complexity and make it harder to find these reliable suppliers?
Starts at 9:33 Is it easy for a company to know their demands are unrealistic for particular supplier?
Starts at 11:04 When a startup is ready to put the final touches on their product, are there any signs they can look for in a supplier that’s good to collaborate with?
Starts at 13:14 Would you say it’s best to have every stage of production very well defined before you even talk to manufacturers?
Starts at 14:45 Is there a way startups who are frequently cash strapped can try to keep costs down without risking issues with the suppliers?
Starts at 16:00 Majority of our audience are making something new. Do you think that’s a danger or does research ameliorate all issues related to that?
Starts at 17:16 What is the best way of crafting an enforceable contract for China that is agreeable to all parties?
Starts at 20:31 When crafting bilingual contracts, one contract is usually deferred to incase of ambiguity. What is the best way to deal with that?
Starts at 22:02 Are there any benefits to having an English only contract or China only contract?
Starts at 24:23 Can you elaborate on the pitfalls of an English contract enforceable in China?
Starts at 25:07 What are the common mistakes that startups make when dealing with manufacturers for the first time?
Starts at 26:26 Do you have any final nuggets for us to wrap up this session?
Format: 85 Minute Video
Status: Available Now/ On-Demand
Prerequisites: China Sourcing 101 and Chinese Courts 102
Contents:
Introduction
China Contracts: Essential Terms & Considerations
- Crafting an Effective Penalty Clause
- Controlling Unauthorized Sub-contracting & Outsourcing
- Official Language
- Reference Samples: Defining the Standard
5&6. Supply Chain Insurance
- Product Liability
- Comprehensive Insurance
- Warranty Considerations & Defect Management
- Clarify Intellectual Property Rights
- The Chinese View of “Force Majeure”
- Handling Official Receipts/ Value Added Tax
- Selecting Jurisdiction
- Template: Vendor Code of Conduct
- Template: Preventing Unauthorized Changes
- Random Inspections and Representative Sampling
- “Binding Signature” is a “Chop”
- NNN in the new NDA
- Special Concerns: Opening Molds, Tool & Dies
- Beware of “Payment Against Documents”
- Importance of using corporate e-mail addresses
- 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:
Step One: Home or Away?
- - - Deciding where to fight the battle. It’s not as easy as you may think.
Step Two: Finding an Attorney
- - - What questions to ask to make sure you have right lawyer.
Step Three: Service Agreements with Law Firms
- - - How to set up a solid service agreement with the lawyer so that you are protected.
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.
300 Level Courses
Format: 35 Page Whitepaper
Status: Available in May 2021
Prerequisites: China Sourcing 101, Chinese Courts 102 & China Sourcing 201
Content: This course offers an insider’s look at how foreigners can register, monitor and enforce Intellectual Property Rights in China.
Introduction:
Registration
- Pros & Cons of Using the World Intellectual Property Organization (WIPO)
- Common Scams Targeting Foreigners Wishing to Register IP in China:
- Scare Tactics/ Phishing Scams
- The “DIY Registration” Scam
- The “Free IP Search” Scam
- The “Fake Patent Office” Scam
- Dealing with Chinese Attorneys: How to Keep Costs Down and Avoid Surprises
- Copyright Registration: Important Considerations
- Trademark Registration: Important Considerations
- Patent Registration: Important Considerations for Utility, Design & Invention Patents
- Weaponizing “Non-Use Cancellation” and “Compulsory Licensing”
Monitoring
Unauthorized Distribution Online:
- The “usual suspects”: English Language Websites to Watch
- The “usual suspects” in China: A list of Chinese Language Websites
- Leverage China’s Intellectual Property Administration
Inside the Supplier:
- Tool & Die Shop
- Warehouse
- Sample Room
- Trade Shows
- Chinese Version of Website
- Dangers of Outsourcing
- Dangers of Staff Turnover
Enforcement
- Case Study: Stopping Counterfeit Products from China
- Help the China courts help you
- Help the China customs office help you
- Help the Chinese sourcing platforms help you
Trends & Expectations
Format: 65 Page Whitepaper
Status: Available in May 2021
Prerequisites: China Sourcing 101
Content:
Opening Remarks:
- “China Quality Control” Not always an oxymoron
- Trends & Expectations for 2021 and beyond
- Communicating expectations to the factory
Part 1: Establishing Quality Control Gates & Effective QC Documentation
- Audit vs Inspection vs Testing
- Statistical Process Control
- Defining Critical, Major & Minor Defects
- Introduction to ISO and Why It Is So Important
- QC Documentation Benchmarks
- Quality Audits
- Pre-production Approval Process
- In-process Inspection
- Pre-shipment Inspection
- Product Testing
Part 2: Building Quality Standards into the Contract
- Leveraging Certificates of Conformance
- “Set the standard. Agree on the methods to check for the standard. Verify the records.”
- Tips for collecting data at the factory floor without becoming the factory’s “headache customer”
- Contracts are static. Standards get updated. Quality levels are fluid. How to reconcile the three?
Part 3: Defects
- Dealing with Non-compliant Products
- Returning Goods to China
- Why Do Suppliers Knowingly Ship Defects?
- Tricks Suppliers Use to Hide Defects
- Defect Management & Compensation Models
Part 4: Working with QC Agents
Part 5: How to build a robust QC system on a tight budget
Next Steps:
Most of the courses are free!
Reach out to Mike via the “contact us” form and let him know which course(s) you wish to take.
You will receive a passcode and instructions on how to unlock the content.