A distribution channel decision is very important. A foreign chemical additive manufacturer wishes to develop an indirect distribution channel into the China refinery and petrochemical market. The selection of a favorable distributor to work with in the China market will involve a number of complex decisions by the manufacturer. Developing the criteria and strategy to screen and select a China distributor is studied in this research. A mutual understanding and cooperation between the manufacturer and distributor to define explicit roles, expectations, and responsibilities is necessary. Three critical definitions include: 1) The contract terms and conditions, especially with regard to time period, contract termination, and consideration of efforts during contract life once contract is terminated; 2) Commitment of the manufacturer to fully support distributor once distribution contract is awarded; 3) The distributor¡¦s opportunities to expand distribution rights in return for strong performance. Motivating the owners and employees of the independent organizations in a distribution chain requires great effort. Methods of motivating a distributor organization will be reserved for a more advanced study in the future.