“Distribution in China–Legal Issues” is a four-part series. Part I discussed the business models and legal structures most commonly used for distribution in China. Part II looks at important issues to consider in the design of a distribution system for China, such as taxation, foreign exchange, antitrust, and specific rules applicable to retail and wholesale distribution activities. Part III will deal with pre-contract matters of which negotiators of distribution agreements for China should be aware. Part IV will outline the main issues parties should take into account when drafting a distribution contract for use in China. These include pricing and payments, exclusivity and territorial restrictions, product liability and intellectual property rights.

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Winston Zhao contributed to this article.