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In this issue:

• Conducting Supplier Due Diligence
• Drafting OEM Agreements
• Tips on Buying and Selling in China
• Setting Up Trading Companies

In this issue of China Briefing we go over some important issues to consider when buying and selling in China. From handling suppliers to OEM contracts, we review effective methods for sourcing from China. First we look at the decision to go and the basic questions that need to be answered before a foreign enterprise can enter the China market. We also examine the threats and opportunities of moving your sourcing operations to the mainland. Once a business has established a sourcing operation in China, it is important to put the China supplier through a thorough due diligence. We cover some of the basic information a foreign investor can obtain from a supplier's business license. In addition, we review some common issues that occur with OEM agreements and list some contractual issues to consider when entering into such agreements.

Finally, we discuss some of the different methods of selling to China. Whether using an agent or distributor, or setting up a foreign-invested commercial enterprise, there are many options for foreign enterprises looking to distribute and sell their products to the growing consumer market in China.