COVID-19 Legal Series (8): How Will PRC Courts Handle COVID-19 Disputes? The Supreme Court Has Its Say

China's top court has issued long-awaited guidance to lower courts about handling civil disputes arising from the novel coronavirus pandemic, calling on lower courts to facilitate continued contractual performance where possible. Although the guidance did not introduce new legal principles or regulations, the court is clear in its intent to support businesses hit by the pandemic while exercising caution about allowing contracts to be terminated, lawyers say.

On Apr. 20, the Supreme People's Court (SPC) published the "Guiding Opinions on Several Issues Concerning the Lawful and Proper Trial of Civil Cases Involving the Novel Coronavirus Pneumonia Epidemic (1)" (最高人民法院关于依法妥善审理涉新冠肺炎疫情民事案件若干问题的指导意见(一)). The Opinions cover a range of issues highly relevant to the pandemic, including how to apply force majeure and other principles when relieving parties, foreign or local, from liability for contractual non-performance due to the pandemic or the government measures that resulted.