It can be incredibly profitable to sell your products in China, and in the age of Amazon and eBay, it is easier than ever. The rapid development of the Chinese economy sets the stage for both great opportunities and great hazards to Western businesses. Aside from the typical care needed for contracts, special care needs to be taken when international transactions are concerned.
Typically, Chinese companies seek to become distributors of popular foreign products via joint ventures, (a structure that rarely makes sense for the foreign company), and sometimes using subsidiaries based in Hong Kong. Before entering into a joint-distribution agreement or partnering with a Chinese firm, it is imperative that these steps are taken (at a minimum) to protect your company and protect your product.