ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintIcon Twitter
Coronavirus

Virus-hit Chinese businesses seek relief with 'act of God' clause

Work stoppages prompt 100 companies to push for release from contract obligations

A worker disinfects a factory in Lianyungang, China, that remained shut down due to the coronavirus outbreak.   © Reuters

SHANGHAI -- Nearly 100 Chinese businesses have been certified to invoke force majeure exemptions from contractual duties by a government trade council that deems the coronavirus outbreak as a qualifying disaster.

Under Chinese law, force majeure -- or act of God -- provisions are usually declared in the event of war, natural disaster, or intervention by state authorities. Commercial contracts generally contain such clauses, and if those conditions are met, a company is exempt from delivering goods or paying invoices, among other previously agreed-upon obligations.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more