Keywords: China distributor disputes | exclusive agency agreements | distributor breach | terminating distribution agreements
Illustrative scenario
After giving a Chinese company exclusive distribution rights, an overseas brand discovers sales far below its suggested price and complaints from other channels. The distributor holds inventory and customer information; the brand is considering termination but fears a claim for abrupt termination.
How a China lawyer can assist
Low resale prices alone do not automatically establish breach or justify penalties. We can review the commercial relationship, scope of authority, pricing, sales obligations, termination and dispute-resolution clauses and assess breach and remedies against orders, sales records and emails. Whether a relationship is distribution or agency depends on the actual arrangement.
We can also assess resale-price management and territorial restrictions under China’s anti-monopoly laws, related rules and market conditions. Subject to authorization, we can assist with communications, demands, termination and handover documents, inventory, receivables, trademark use, after-sales service and customer information, and evaluate arbitration or litigation.
Before changing channel policies or terminating cooperation, engage us to assess contractual compliance and anti-monopoly risks.