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ARTICLE · 12 MARCH 2020

How Are 'Force Majeure' Events Regulated Under PRC Laws?

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The outbreak is also causing significant impact to production, logistics, international services and other aspects of business and operation. Whether your businesses are based in Mainland China or...

ChinaCorporate/Commercial Law
Daniel Tang
Daniel Tang
Mabel Mabel Lui
Mabel Mabel Lui
Joyce He
Joyce He
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The outbreak is also causing significant impact to production, logistics, international services and other aspects of business and operation. Whether your businesses are based in Mainland China or rely on raw materials from there, you should consider how the very different legal and regulatory regime may impact your business operations.

How are 'force majeure' events regulated under People’s Republic of China (“PRC”) laws?

The starting point is always the relevant provisions in the contracts. Since the virus is a relatively new phenomenon, it is unlikely that any 'force majeure' clauses would explicitly refer to the event of a coronavirus outbreak. In order to rely on the 'force majeure' clause, parties will need to consider the other events included, such as epidemic diseases and plagues, actions by government and authorities, or work stoppages.

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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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