Local businesses, as well as global companies with significant
footprints in China, have temporarily suspended their production,
logistics, international service, and other aspects of their
operations as they grapple with the widespread disruption brought
on by the novel coronavirus 2019 (nCOV-19) outbreak that has
derailed commerce in China. This has also spurred companies to
review their rights and obligations under the contracts,
particularly whether they can declare "force majeure" to
exempt them from contractual obligations!
In this article, we will take a look at the applicability of
force majeure in contract disputes in China.
What is force majeure?
According to Article 153 of the "General Principles of The
Civil Law of The People's Republic of China" and Article
117 of the "Contract Law of The People's Republic of
China," force majeure clauses are contractual clauses which
alter parties' contractual obligations and absolve them from
penalties when an
