OEM is the abbreviation of English original equipment manufacturer. Literally, it should be translated into original equipment manufacturer. It means that a manufacturer produces products and product accessories for another manufacturer according to his requirements. Also called OEM or authorized OEM. It can represent outsourcing or subcontracting. Commonly known as cooperative production and tripartite processing in China, commonly known as processing trade.

OEM is the only way under the trend of large-scale socialized production and cooperation, and it is also one of the effective ways to rationalize resources and the result of large-scale socialized production. In Europe, OEM trade associations were established as early as 1960s, and OEM production and trade reached 350 billion euros in 1998, accounting for more than 14% of the total industrial output value in Europe. OEM production has become an important part of modern industrial production. With the further acceleration of economic globalization, OEM demanders may choose OEM suppliers in a wider range, especially to countries and regions with low processing and manufacturing costs.

To put it bluntly, it is the products customized by Company A for Company B or the products produced by Company A on the market, in which the copyright belongs to Company A and the right to use belongs to Company B..