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China As Distribution Center. Explained.

By Dan Harris and Steve Dickinson

One of the fascinating things about having a China law practice is the front row seat it provides into the evolving trade relationship China has with the rest of the world. One of the things I have seen happening in far greater numbers over the last year or so are US companies establishing their worldwide or Asian distribution centers in mainland China. I have seen this from companies that used to have their only distribution center in the United States and I have seen this from companies that have distribution centers all around the world: Chaina Magazine (the Magazine of the Global Supply Chain Council) just ran a very detailed article by Damon R. Paling, of PricewaterhouseCooper's Shanghai office, entitled, "Planning for Economic Recovery: Establishing a Regional Distribution Centre in China." The article "summarizes the experiences of a US luxury retailer as they evaluated options for establishing a Regional Distribution Centre (RDC) on Mainland China," and in doing so, makes for an excellent primer for anyone thinking of setting up distribution in China. I recommend it for those looking to engage in product distribution from China.

Full post as published by China Law Blog on December 15, 2009 (boomark / email).