@Landsteiner posted:"So, if a deal is made what exactly are you entering yourself into and buying if such a sale of the line is done?"
The factories demand and get up front payment for tooling costs before the product is shipped, according to some who should know. That's true of domestic manufacture too, of course, except you own the tooling if you paid for it. That's less clear with China. You don't see profits until you amortize the cost of the capital investment in tooling, not to mention operating expenses.
So a possibility could be that the Chinese ask for an up front deposit without specifying what it will be used for and the balance to be paid on completion.
The Chinese then use the up front deposit to cover a lot of the costs of development and production etc and then make a profit on final completion.
This way they would still own/control the tooling and intellectual property of an item I suspect?
