1.Products and Specifications: The product to be manufactured should be clearly defined in the contract, along with relevant appendices detailing the product specifications.

2.Forecast and bound procurement/supply commitments: OEM agreements typically require the placement of firm orders via purchase orders. To ensure that the agreement itself has binding supply/supply commitments, the parties will typically specify certain minimum commitments to produce and purchase within a given time period. A certain quantity of product.

3.Price: For the products described previously, the parties should determine fixed prices that will be valid for the term of the agreement or at least for part of the term, and we recommend setting a maximum periodic price increase.

4.Detailed Documentation: When working with Chinese factories, the first element of quality is documentation. Checking the specifications of the item before shipping the product and keeping detailed records of it are crucial to controlling product quality.

5.Factory Presence: Having a presence in the factory ensures that factory employees and management truly understand the foreign company. Make sure, either through a third-party quality control company or your own employees, that you are regularly represented in person at the factory and that the factory clearly links your presence there to your production.

6.Inspections: Perform regular product inspections (either through your employees or a third party) not only on final product shipments, but also during production.

7.Keep Approval Samples: They say a picture is worth a thousand words, but a sample can save a thousand words! Goods are often modified and revised during the procurement process, and then again after production begins. Keeping an approved sample in your office and factory can be used to verify the quality control of manufactured products, which is critical to achieving consensus with Chinese suppliers.

8.OEM Manufacturing Contract: Finally, a well-drafted contract (known as an OEM manufacturing contract in China) is also key. Chinese companies, like companies elsewhere, don’t like being sued. A good contract means incorporating key quality requirements and setting up liability for Chinese companies that fail to meet them.