There is no specific rule in China’s Trademark Law and international treaties addressing the trademark infringing liability of OEM. At the very beginning, based on the regional nature of trademark rights, Chinese courts find trademark infringement of OEM trustee’s behavior of processing the same product with the same trademark and delivering it to the outside world. However, the courts later apply the so-called“non-trademark use”theory to the OEM cases and find no trademark infringement. Although this theory provides theoretical convenience for finding no trademark infringement of OEM trustees, it is contrary to our common sense and self-contradictory in theory. The replacement of confusing judgments with this theory will result in the loss of flexibility in trademark law in the face of increasingly complex OEM cases and the inability to finely balance the interests between OEM trustees and trademark owners. Meanwhile, the proposal to impose obligations on OEM trustees to conduct necessary review of the deal is based on the trademark indirect infringement theory and completely contrary to the non-trademark use theory of OEM and will lead to further confusion in the application of the law. We propose to limit the application of Non-trademark Use Theory and return to the traditional trademark infringement determination.