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Commercial contracts add China-Taiwan risk clauses as tensions rise

Companies brace for possibility of invasion, other disruptions from geopolitics

This screen at a Beijing shopping mall on April 10 shows footage of a PLA jet taking part in Joint Sword exercises around Taiwan. Companies are starting to prepare for contingencies around the island.   © Reuters

HONG KONG -- Multinational corporations are inserting clauses related to China-Taiwan tensions into commercial contracts as fears rise regarding possible Chinese action around the democratically ruled island.

Specific provisions covering a possible conflict in the Taiwan Strait -- as well as business disruptions caused by tensions over Taiwan more broadly -- have been included in agreements in recent months, lawyers have told Nikkei Asia.

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