Manufacturing Contracts With Chinese Suppliers: What to Include, Including NNN Agreements
Short answer
A manufacturing contract with a Chinese supplier should set out the specification and golden sample, quality standards and inspection rights, price, payment terms tied to inspection, lead times and penalties, packaging and labelling, ownership of moulds and designs, and how disputes are resolved. For design protection, many buyers also use an NNN agreement (non-disclosure, non-use and non-circumvention), drafted to be enforceable in China. Have a qualified lawyer review important contracts.
Key takeaways
- ✓Tie the balance payment to passing inspection.
- ✓Name the golden sample as the quality reference.
- ✓State who owns moulds, tooling and designs.
- ✓An NNN agreement is designed to be more useful in China than a standard NDA.
What should a manufacturing contract include?
| Clause | Why it matters |
|---|---|
| Specification and golden sample | Defines exactly what you are buying |
| Quality standard and AQL | Sets what counts as acceptable |
| Inspection rights | Lets your inspectors check goods before payment |
| Price and payment terms | Deposit and balance, with the balance after inspection |
| Lead time and penalties | Protects your launch dates |
| Packaging and labelling | Avoids customs and retail problems |
| Tooling and design ownership | Keeps moulds and designs yours |
| Change control | No changes without written approval |
| Dispute resolution | Where and how disagreements are settled |
Want your product made, inspected and delivered without the risk?
Husbar China Line verifies factories, negotiates for you, arranges on-site inspection before you pay the balance, and manages freight to the UAE, Saudi Arabia and Pakistan.
Request a China Line consultationWhat is an NNN agreement?
NNN stands for non-disclosure, non-use and non-circumvention. A standard Western NDA mainly stops someone sharing your information. An NNN also stops the factory using your design to make and sell products itself, and from going around you to your customers. To be practical, it is usually written in Chinese, governed by Chinese law and enforceable in a Chinese court. Legal advice is recommended.
Do you also need a trademark?
If you sell under your own brand, registering your trademark in China as well as your home market helps prevent others registering it first. Read how to protect your product idea and trademark in China.
With Husbar China Line, no supplier is introduced before verification and a signed supplier agreement, every negotiated term is shared with you in writing, and your brand, designs and stock remain yours. See China Line.
Frequently asked questions
Is a purchase order enough?+
For small, simple orders some buyers rely on detailed purchase orders, but a proper contract gives much stronger protection on quality, timelines and ownership.
Should my contract be in English or Chinese?+
For enforceability in China, a Chinese version, or a bilingual contract with Chinese as the governing language, is often recommended. Take legal advice.
Who owns the mould if I paid for it?+
Only if your contract says so. State clearly that tooling you pay for belongs to you.
Team Husbar
Husbar Editorial
Team Husbar is the strategy, psychology and research team at Husbar, a psychology-led growth agency headquartered in Dubai. Together we have worked with 100+ brands over 10+ years.
Want your product made, inspected and delivered without the risk?
Husbar China Line verifies factories, negotiates for you, arranges on-site inspection before you pay the balance, and manages freight to the UAE, Saudi Arabia and Pakistan.
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