The NDA agreements focus on the protection of trade secrets. For a trade secret to be a protected property, information must remain a secret. That is why the NDA agreements are intended to prevent the disclosure of a trade secret to the public. The NDAs focus on preventing the provision of secret information to the public. Since Western companies generally focus on maintaining their national intellectual property portfolio, they naturally tend to rely on a single NOA agreement, written in English and subject to the laws of their country of origin and applicable exclusively in that country. But for the following two reasons, this type of NOA is not worth it in China. For 99% of you who read this, I bet you are not ready to go to China and fight in a Chinese court to enforce your agreement. The reason is that, while the agreement is entirely appropriate for the United States, it is not enough to address the unique challenges that you, as a U.S. company, can face in cooperation with Chinese producers. One thing you should avoid if you design your non-disclosure agreement is to write it only in English.
For all the reasons written so far. As this is almost impossible, you can write a provision in which the main company is held responsible for any violation of the agreement by one of its subcontractors. Since then, China`s legal system has operated in a way that contrasts with other parts of the world. Common law lawyers need to think outside the box to prepare contracts that can be implemented in their respective contexts. The lawyer must keep an eye on one thing and leave no room for manoeuvre to take omission measures in the Chinese context. They include a certain monetary value in the form of compensation for any type of violation or violation of the NNN agreement. This applies to each offence. The aim is to avoid omission relief and the aim is to include the discharge of monetary policy. A confidentiality agreement is a legal document and is generally used in Western countries to protect confidential information between a partnership, a relationship, a negotiation, mergers, acquisitions and all kinds of transactions. That is why it is proposed to develop a binding NNN treaty for China. The NNN agreement should be the entity to which you send confidential information directly.
Assuming that the Chinese company is the right consideration, you should be sure to respect the terms of the NNN agreement. Send only information to the Chinese company. The agreement is synonymous with non-use, non-disclosure and non-circumvention. Since Chinese companies know that non-compliance with a well-developed and China-oriented NNN agreement will likely lead to a Chinese court ordering a freeze on their assets, we usually encounter the following three responses from Chinese companies to our NNN agreements: if you rewrite a substantive NNN agreement, you should be wary of the potential pitfalls of this treaty, especially if it is your first time to draft an agreement. Do you think that half of what you see, and nothing you hear ndAs, is appropriate because the sourcing companies with which you work should already have their own agreements and relationships with reliable companies. It is easy to see why so many Western entrepreneurs believe that an NDA agreement will protect them in China; they are simply used to drawing one for signature almost everywhere in the Western world. But what you need to recognize, is that the Chinese legal system is very different from that of the United States, the EU, Australia, Canada and Latin America (and many other places) and you simply cannot assume that the procedures/standards/analysis/laws in force in the West will apply in the same way in China, especially because they rarely and certainly do not do so when it comes to confidentiality agreements.