{"id":36,"date":"2025-12-08T21:38:17","date_gmt":"2025-12-08T18:38:17","guid":{"rendered":"https:\/\/ithalatdanismanim.com\/en\/?p=36"},"modified":"2025-12-10T19:52:53","modified_gmt":"2025-12-10T16:52:53","slug":"key-points-to-consider-when-signing-contracts-in-china","status":"publish","type":"post","link":"https:\/\/ithalatdanismanim.com\/en\/key-points-to-consider-when-signing-contracts-in-china\/","title":{"rendered":"Key Points to Consider When Signing Contracts in China"},"content":{"rendered":"<div>As China continues to grow as the world\u2019s leading manufacturing hub, the number of Turkish companies engaging in sourcing, production, subcontracting, and machinery investments in China increases each year. However, one of the most critical factors when doing business in China is having a properly drafted contract.<\/div>\n<div><\/div>\n<div>Chinese law is significantly different from Turkish law, and poorly drafted contracts may result in:<\/div>\n<div>\u2022Low product quality<\/div>\n<div>\u2022Delayed deliveries<\/div>\n<div>\u2022Manufacturers avoiding responsibility<\/div>\n<div>\u2022Almost impossible legal recourse<\/div>\n<div><\/div>\n<div>In this article, we outline the essential clauses you must include when signing a contract with a Chinese manufacturer or supplier.<\/div>\n<div><\/div>\n<div><strong>1. The Contract Must Be in Chinese (Bilingual: English + Chinese)<\/strong><\/div>\n<div><\/div>\n<div>Chinese courts only recognize contracts prepared in Chinese.<\/div>\n<div>Contracts written solely in English are legally weak.<\/div>\n<div><\/div>\n<div>The safest structure is:<\/div>\n<div>\u2714 A bilingual contract (Chinese + English)<\/div>\n<div>\u2714 A clause stating that the Chinese text prevails in case of dispute<\/div>\n<div><\/div>\n<div><strong>2. Technical Drawings, Specifications, and Tolerances Must Be Attached to the Contract<\/strong><\/div>\n<div><\/div>\n<div>In China, any technical detail not written in the contract is not legally binding.<\/div>\n<div><\/div>\n<div>The contract must include:<\/div>\n<div>\u2022Technical drawings (with revision dates)<\/div>\n<div>\u2022Tolerances and GD&amp;T requirements<\/div>\n<div>\u2022Surface quality details (Ra, coating, paint, machining marks)<\/div>\n<div>\u2022Material standards (ASTM, EN, DIN)<\/div>\n<div>\u2022Heat treatment requirements<\/div>\n<div>\u2022Full process steps (welding, milling, CNC, coating, etc.)<\/div>\n<div><\/div>\n<div><strong>3. Quality Control Clauses: FAI, PSI, FAT<\/strong><\/div>\n<div><\/div>\n<div>These clauses must be explicitly stated:<\/div>\n<div>\u2022FAI (First Article Inspection)<\/div>\n<div>\u2022In-line QC \u2013 Right to inspect during production<\/div>\n<div>\u2022PSI (Pre-Shipment Inspection)<\/div>\n<div>\u2022FAT (Factory Acceptance Test) for machinery and production lines<\/div>\n<div><\/div>\n<div>Mandatory statements to include:<\/div>\n<div>\u2714 \u201cMass production cannot begin without FAI approval.\u201d<\/div>\n<div>\u2714 \u201cProducts cannot be shipped without an approved PSI report.\u201d<\/div>\n<div><\/div>\n<div><strong>4. Product Labeling, Packaging, and Shipping Requirements<\/strong><\/div>\n<div><\/div>\n<div>Incorrect packaging is one of the most common causes of damage in China.<\/div>\n<div><\/div>\n<div>The contract should specify:<\/div>\n<div>\u2022Shock-resistant packaging standards<\/div>\n<div>\u2022Moisture and corrosion protection<\/div>\n<div>\u2022ISPM-15 requirement for wooden crates<\/div>\n<div>\u2022Labeling on each box: product name, size, quantity, lot number<\/div>\n<div>\u2022Seller liability for damaged goods<\/div>\n<div><\/div>\n<div><strong>5. Clear Payment Terms and Penalties<\/strong><\/div>\n<div><\/div>\n<div>The safest payment methods in China:<\/div>\n<div>\u2022LC (Letter of Credit)<\/div>\n<div>\u2022T\/T with low deposit + balance tied to delivery and inspection<\/div>\n<div><\/div>\n<div>The contract must clearly include:<\/div>\n<div>\u2714 Late delivery penalties<\/div>\n<div>\u2714 Mandatory re-production of non-conforming items<\/div>\n<div>\u2714 All costs of defective production covered by the manufacturer<\/div>\n<div>\u2714 Payments linked to QC approval<\/div>\n<div><\/div>\n<div><strong>6. NDA and Protection of Technical Drawings<\/strong><\/div>\n<div><\/div>\n<div>In China, sharing drawings with third parties is a frequent risk.<\/div>\n<div><\/div>\n<div>Therefore:<\/div>\n<div>\u2022NDA must be prepared in Chinese<\/div>\n<div>\u2022Drawings should include: \u201cConfidential \u2013 Not to be reproduced\u201d<\/div>\n<div>\u2022Subcontracting must be prohibited unless written approval is given<\/div>\n<div>\u2022Drawings accessible only to authorized personnel<\/div>\n<div><\/div>\n<div><strong>7. Material Certificates, Tests, and Standards<\/strong><\/div>\n<div><\/div>\n<div>Mandatory especially for precision components and defense-related projects:<\/div>\n<div>\u20223.1 material certificate<\/div>\n<div>\u2022Chemical composition test<\/div>\n<div>\u2022Hardness test<\/div>\n<div>\u2022Tensile test<\/div>\n<div>\u2022NDT tests (UT, PT, MT, RT)<\/div>\n<div>\u2022Heat treatment certificate<\/div>\n<div><\/div>\n<div>If these are not written in the contract, the manufacturer may simply ignore them.<\/div>\n<div><\/div>\n<div><strong>8. Delivery Times, Delay Penalties, and Logistics Plan<\/strong><\/div>\n<div><\/div>\n<div>Delays are common in China.<\/div>\n<div>The contract must clearly define:<\/div>\n<div>\u2022Exact production lead time<\/div>\n<div>\u2022Daily penalty for delays<\/div>\n<div>\u2022Refund or cancellation rights if delay exceeds 10 days<\/div>\n<div>\u2022Shipping terms (FOB, EXW, CIF)<\/div>\n<div><\/div>\n<div><strong>9. Dispute Resolution and Applicable Jurisdiction (Most Important Clause)<\/strong><\/div>\n<div><\/div>\n<div>If the \u201cdispute resolution\u201d clause is wrong, all rights can be lost.<\/div>\n<div><\/div>\n<div>Safest options:<\/div>\n<div>1.CIETAC \u2013 China International Economic and Trade Arbitration Commission<\/div>\n<div>2.Shanghai or Shenzhen courts<\/div>\n<div><\/div>\n<div>Incorrect options:<\/div>\n<div>\u2718 Non-Chinese courts (China will not enforce them)<\/div>\n<div>\u2718 \u201cParties may apply to their own courts\u201d (legally invalid)<\/div>\n<div><\/div>\n<div><strong>10. Manufacturer Information and Official Company Seal (\u516c\u53f8\u516c\u7ae0)<\/strong><\/div>\n<div><\/div>\n<div>For a contract to be valid in China, it must include:<\/div>\n<div>\u2022Full legal company name (in Chinese)<\/div>\n<div>\u2022Business registration number<\/div>\n<div>\u2022Legal address<\/div>\n<div>\u2022Legal representative\u2019s name<\/div>\n<div>\u2022The company\u2019s official red seal (company chop)<\/div>\n<div><\/div>\n<div>Without the company chop, the contract is not legally binding.<\/div>\n<div><\/div>\n<div><strong>Conclusion<\/strong><\/div>\n<div><\/div>\n<div>A well-drafted contract in China protects your quality, reduces production risks, and safeguards your company from serious financial loss.<\/div>\n<div><\/div>\n<div>The essentials of a strong China contract:<\/div>\n<div>\u2022Bilingual text (Chinese + English)<\/div>\n<div>\u2022Clear technical attachments<\/div>\n<div>\u2022FAI + PSI + FAT clauses<\/div>\n<div>\u2022Delay and quality penalties<\/div>\n<div>\u2022NDA and drawing protection<\/div>\n<div>\u2022Official company seal (chop)<\/div>\n<div>\u2022Correct court\/arbitration selection<\/div>\n","protected":false},"excerpt":{"rendered":"<p>As China continues to grow as the world\u2019s leading manufacturing hub, the number of Turkish companies engaging in sourcing, production, subcontracting, and machinery investments in China increases each year. However, one of the most critical factors when doing business in China is having a properly drafted contract. Chinese law is significantly different from Turkish law, and poorly drafted contracts may result in: \u2022Low product quality \u2022Delayed deliveries \u2022Manufacturers avoiding responsibility \u2022Almost impossible legal recourse In this article, we outline the essential clauses you must include when signing a contract with a Chinese manufacturer or supplier. 1. The Contract Must Be&#8230; <\/p>\n","protected":false},"author":1,"featured_media":66,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-36","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Key Points to Consider When Signing Contracts in China - Import Consultant<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ithalatdanismanim.com\/en\/key-points-to-consider-when-signing-contracts-in-china\/\" \/>\n<meta property=\"og:locale\" content=\"tr_TR\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Key Points to Consider When Signing Contracts in China - Import Consultant\" \/>\n<meta property=\"og:description\" content=\"As China continues to grow as the world\u2019s leading manufacturing hub, the number of Turkish companies engaging in sourcing, production, subcontracting, and machinery investments in China increases each year. 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