Local partner due diligence when the partner is also the permission gate
The wrong partner does not only slow sales. It can own the customer, distort the price and create compliance liability.
A local partner can be a sales channel, a regulatory interpreter, a logistics operator and a reputation proxy at the same time. That makes partner diligence more important than a normal background check.
The diligence should test customer ownership, pricing discipline, government-facing claims, product-safety responsibilities, data access, exclusivity, anti-bribery controls, after-sales service and the right to audit underlying records.
Chinese mid-market companies are especially vulnerable because the first successful partner often becomes the only source of local market truth. By the time the company notices discount leakage or customer capture, switching costs may already be high.
The board-ready output should classify partners into three types: test partner, controlled growth partner and strategic local platform. Each type needs different contract terms, reporting duties, termination rights and public proof obligations.
