There are also situations where for strategic reasons, a foreign company will partner with a Chinese company with the full intention of turning the Chinese company into a future competitor. An example of where this could happen is if a company's expansion is limited by anti-trust or regulatory reasons to X% of the market, and creating a Chinese competitor makes the pie bigger, which allows the first company to expand. This happens in banking.

However, my question to you is; what is the reality of enforcement of this NNN agreement should the company act against it? How much time and money will it take? What is the CN court system's history of deciding in the foreign company's favor? And if you happen to be successful with a judgement, what about enforcement? How does the foreign company compel action by the CN company whether it be a cease and desist or some sort of financial compensation?

Thanks.

My comment about China business is to carefully partner with a long term vendor. China is not about agreements, not about legality, it is all about relationships. If you have a key product with intellectual property value, consider a country with a more practical legal environment, practically speaking there is no legal protection in China. The cost savings by Chinese manufacturing may be quickly offset by having your idea stolen. On the other hand China has many, many advantages in certain applications. Know when to do business in China, when not to!

Conclusion: hospitals and courts are the places where you don't want to be in China... or divorce court in the USA!

Thanks.

Scotty