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Unauthorized Discounting by a China Distributor: Agency and Channel Disputes

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.

Attorney: Hongyu XiaoLicense no.: 13201201611507524

Lantai Partners · International Legal Services Team

WhatsApp: +8618994028276Email: [email protected]

The information on this website is for general informational purposes only and does not constitute formal legal advice on any specific matter. An attorney-client relationship is established only after a conflict-of-interest check, execution of a written engagement agreement and completion of any other applicable procedures. Outcomes depend on the facts, evidence, applicable law and requirements of the relevant authorities.