Non-Disclosure Agreement (NDA)

A Non-Disclosure Agreement (NDA) is a legally binding document in foreign trade cooperation where one or both parties agree to keep specific information confidential. Its core meaning is: the receiving party promises not to disclose to third parties or use (except for agreed purposes) sensitive information provided by the disclosing party, such as trade secrets, customer lists, pricing policies, technical data, etc. It is widely used in scenarios such as agency negotiations, OEM cooperation, technology licensing, procurement inquiries, joint venture factory construction, etc. Precautions: The scope of confidential information, confidentiality period (usually 2-5 years), breach compensation, applicable law and dispute resolution methods must be clearly defined; a unilateral NDA binds only one party, while a bilateral NDA binds both parties. Difference from other terms: NDA focuses on information confidentiality, while non-compete agreements restrict post-employment activities, and exclusivity agreements restrict transaction partners; NDA does not involve the transaction itself and is an ancillary agreement. In foreign trade, it is recommended to sign before disclosing sensitive information and ensure the other party has the authority to sign.