In the first episode of the China Law Podcast, we discuss Chinese businesses claiming force majeure exemptions to contracts. Should foreign counterparties grant these exemptions? Must they? Or should they sue instead? And perhaps most importantly, would they win?
China was promoting online dispute resolution even before the coronavirus outbreak. Now, the government wants to see more of it, as business in the country resumes. But questions remain as to whether it will catch on for international disputes.
China promotes arbitration, mediation for virus-related business disputes; business resumption requirements clarified by State Council notice; and government offers subsidies to airlines struggling amid epidemic
Economy still stifled despite positive signs indicating success in containing virus; record issuance of force majeure certificates to Chinese businesses disrupted by epidemic; and JP Morgan indexes begin Chinese government bond inclusion
With business disruption caused by the emergence of COVID-19 and possible failure to deliver on contractual obligations on the part of Chinese counterparties, foreign companies doing business in China must consider their contractual liabilities in order to mitigate their potential risks. Scott Yu, Frank Jiang and John Jiang of Zhong Lun Law Firm examine the implications. The authors are grateful for the assistance of Emily Xu and Evy Wu in preparing this article.
Fang Qi of Fangda Partners examines how companies can deal with their contractual obligations during the coronavirus outbreak that has undoubtedly wreaked havoc on business operations and affected contractual relationships for many entities.
Experts are telling clients they have three options: grant the exemption, fight it in court, or negotiate a compromise. [The original version of this article was published on Corporate Counsel.]
