What should a manufacturing contract with a Chinese supplier actually cover, and how can it help protect your product, intellectual property, tooling, quality, and supply chain?
In this CMD Gold episode of China Manufacturing Decoded, Adrian and Renaud revisit a practical discussion about the agreements importers and product developers should consider when working with manufacturers in China.
They explain why the real value of a good supplier agreement starts long before a dispute occurs: it forces both sides to put expectations in writing and agree on what happens if something goes wrong.
Topics include:
Why some importers still work with Chinese suppliers without proper contracts
The practical benefits of putting supplier expectations in writing
What an NNN agreement covers: non-disclosure, non-use, and non-circumvention
Who should own the product IP, design files, and tooling
What a Manufacturing Agreement should cover
Controlling subcontracting and defining the approved manufacturing location
...and more
The key takeaway is simple: a manufacturing contract is not only something to rely on when a supplier relationship breaks down. Its greatest value may be preventing ambiguity and disputes in the first place.
Important note: This conversation originally aired in 2020 and is being revisited as part of our CMD Gold series. Chinese law has evolved since the original recording, so this episode provides practical manufacturing guidance rather than current legal advice. Sofeast are not lawyers. Any agreement you intend to rely on should be reviewed by appropriate legal counsel familiar with current Chinese law and your specific circumstances.
Show Sections
00:00 – CMD Gold introduction
01:29 – Why do buyers work with Chinese suppliers without contracts?
03:16 – Why overseas buyers can underestimate supplier risk
05:52 – What does a manufacturing contract actually do for you?
10:13 – Other agreements new-product buyers should consider
12:46 – Product development agreements and IP ownership
16:27 – What is an NNN agreement?
17:33 – What should a manufacturing agreement cover?
23:09 – When NNN and development agreements may not be necessary
24:45 – Subcontracting, factory access and inspection rights
25:47 – Manufacturing defects vs design defects
28:22 – Field failures, termination and how detailed the contract should be
31:30 – Why supplier agreements shouldn't live in WeChat and email
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