What are the rules governing the distribution of products in China?
The rules governing the distribution of products in China are quite specific and complex. All foreign entities must register with the local government authority before engaging in business in China. In order to distribute products in China, foreign entities must obtain a sales license from the local government authority and apply for a business license from the China Regulatory Administration of Commerce. Furthermore, foreign entities must comply with China’s foreign trading policy, which requires the use of a special foreign trade entity as an intermediary between a foreign entity and Chinese customers. The foreign trade entity is responsible for providing legal advice, helping with product registration, obtaining approval from the relevant government departments, and providing other services necessary for conducting a successful business in China. In addition, the entity must comply with various laws and regulations related to the distribution of products in China, such as product labeling laws, advertising laws, and pricing regulations. Finally, foreign entities must comply with safety and quality regulations, including safety testing, quality inspections, and product certification. These regulations are constantly changing and businesses must regularly update their understanding of these rules in order to stay compliant.
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