As disputes involving Chinese parties mount each day amid the many disruptions to international contracts and supply chains caused by the coronavirus, a Chinese semi-governmental body has been issuing force majeure certificates to local businesses struggling to meet their contractual obligations.
The move has caused confusion for foreign businesses that deal with Chinese parties. They, too, are preparing for the inevitable legal and economic fallout from the COVID-19 crisis in the weeks and months ahead, and they are not sure what weight these certificates will have. In particular, they have questions about their significance as they relate to international arbitration, the prevalent dispute resolution method for cross-border commercial transactions.
