Original equipment manufacturing in China is a very popular business model in which an overseas company engages a Chinese domestic manufacturer who is typically called an original equipment manufacturer (OEM) to manufacture products based on the instructions and requirements of the overseas company, label the overseas company's trademark on the products, and export all products to an overseas destination designated by this overseas company. This business model has thrived for decades and helped China become the world's factory. However, a dispute frequently arises when the Chinese OEM labels a foreign trademark which has been registered in China by a third party.