Invoking Force Majeure In Commercial Contracts During Or After Lockdown

From March 2022, several cities in China have established citywide or block lockdown to contain the new variant of COVID-19 virus – Omicron. Namely in Shanghai, the citywide lockdown from 1 April has continued into May and more cities are experiencing ad-hoc lockdown or epidemic control and prevention measures. As a result, companies may face difficulties rendering contractual obligations, for example inability to continue manufacturing goods or performing services under terms agreed in commercial contracts signed before the lockdown. Under such cases, the circumstances in which the contracts were originally signed under have significantly changed and companies may invoke force majeure.