The COVID-19 outbreak has a wide impact on almost all walks of life. On January 30th, 2020, the World Health Organization (WHO) announced that the COVID-19 is listed as a Public Health Emergency of International Concern (PHEIC).

On the same day, CCPIT (China Council for the Promotion of International Trade) has announced that its Commercial Certification Center can issue a Force Majeure Certificate and companies may apply for a factual proof related to Force Majeure. The CCPIT’s Commercial Certification Center has developed an online platform （http://www.rzccpit.com/） for the application. Such a certificate can be issued in one business day. The factual proof mainly involves the government decisions during the epidemic with regards to (1) the extension of the Spring Festival holiday; (2) the work resumption and school opening time; (3) the postponed travel to certain cities; (4) recent control measures taken by certain countries; (5) the suspension on team tourism; (6) the condition of recovery of production and work resumption includes but not limited to checks conducted upon arrival time, the mandatory quarantine for 14 days, and the closed management.

Under Contract Law of People’s Republic of China, a party to a contract that is not able to perform the contract due to the Force Majeure event shall give timely notice to the other party. A Force Majeure Certificate may be used as supporting materials when disputes arise.

However, an affected party cannot solely rely on a Force Majeure Certificate to avoid contractual obligations. Under Article 117, 118 of the Contract Law of People’s Republic of China, as well as guidance documents issued by the local provincial courts, four factors will be jointly considered by the courts to decide whether the Force Majeure provision is applicable:
(1) The period during which the epidemic occurred;
(2) The causal relationship between the frustration of the contract and the Force Majeure event;
(3) The extent to which the contract performance was affected;
(4) Whether the affected party has performed the notification obligation promptly.

Even if the Force Majeure provision is applied, the affected party may still not be able to be exempted from the liability completely, the degree of which shall depend on the impact of the Force Majeure event on the performance of the contract.

Besides the Force Majeure provision, the affected party can argue for the exemption or mitigation of the contractual liabilities under the epidemic by applying the principle of Change of Circumstances. Under the Interpretation of the Supreme Court on Certain Issues Concerning the Application of the PRC Contract Law (II) and the guidance documents issued by the local higher people's courts, the principle of Change of Circumstances shall be applied when the continuous performance of the contract is unfair to the party due to occurrence of a change of circumstances. The decision of whether such a provision can be applied must be made prudently and be approved by the higher people's courts.

With the increasing demands of legal service on the dispute resolution concerning the epidemic, Wang Jing & GH Law Firm invited Ms. Wang Heng, the former head of the Environmental Resources Trial Division, the Senior Judge with the third rank of the Guangdong Higher People’s Court, to hold a webinar with the topic “Dispute Resolution Mechanism under the Epidemic”.

Ms. Wang shared with us her understanding of the “Guidelines on Several Issues concerning the Trial of Commercial Cases under COVID-19” issued by Higher People’s Court of Guangdong Province, among which, she summarized the judicial principle of regarding the right to rescind a contract, the trial tendency upon handling the disputes in the particular industry such as finance, insurance, credit, securities, etc. and the difference between the application of Force Majeure and the Change of Circumstances, etc. In conclusion, Ms. Wang emphasized the application of the Force Majeure provision shall be analyzed on a case-by-case basis. Also, mediation is highly recommended for solving disputes in relation to the epidemic.

For more information on the “Guidelines on Several Issues concerning the Trial of Commercial Cases under COVID-19” issued by Higher People’s Court of Guangdong Province, or for laws and policies that might or might not impact your business in China, please contact Wang Jing & GH Law Firm.（The official website is being updated.）

近来，新冠肺炎疫情几乎对各行各业都产生了广泛影响。2020年1月30日，世界卫生组织宣布将新型冠状病毒肺炎列为国际关注的突发公共卫生事件。

同时，中国国际贸易促进委员会发布其商事认证中心可出具不可抗力证明的消息。中国贸促会商事认证中心现已开通在线申请认证平台http://www.rzccpit.com/，相关公司可以申请不可抗力事实证明，该证明将在一个工作日内颁发。该不可抗力事实证明主要涉及疫情期间的政府决策，包括：（1）春节假期延长；（2）复工复学；（3）暂停出入某些城市；（4）一些国家最近采取的防控措施；（5）暂停团体旅游服务；（6）复工复产的条件包括但不限于监管到达时间、14天的强制隔离观察和封闭式管理。

根据《中华人民共和国合同法》的规定，当事人一方因不可抗力不能履行合同的，应及时通知对方。如发生争议，不可抗力事实性证明书也可作为证据提交。

但是，合同一方也不能仅依靠不可抗力证明来避免履行合同义务。根据《中华人民共和国合同法》第117条、第118条及省级法院发布的指导文件规定，法院适用不可抗力条款会综合考虑以下四个方面：（1）疫情影响的时间；（2）不履行合同义务与不可抗力事件之间的因果关系；（3）疫情对合同履行的影响程度；（4）当事人是否及时履行了通知义务。

即使不可抗力条款适用，合同一方也未必能免除全部责任，免除责任程度取决于不可抗力事件对合同履行的影响程度。

除不可抗力外，在疫情之下合同一方可以通过适用情势变更原则主张免除或减轻合同责任。根据《最高人民法院关于适用<中华人民共和国合同法>若干问题的解释(二)》，并参照地方高级人民法院发布的指导性文件，当客观情况发生重大变化，继续履行合同对于一方当事人明显不公平时，合同一方可以适用情势变更原则。该条款的适用决定必须审慎作出，并且须经高级人民法院批准。

疫情期间，对争议解决的法律服务需求不断增加，广东广悦律师事务所举办了"疫情下纠纷解决机制"网络研讨会，邀请原环境资源审判庭负责人、广东省高级人民法院三级高级法官王恒女士担任主讲。

王恒女士与我们分享了她对广东省高级法院发布的《关于审理涉新冠肺炎疫情商事案件若干问题的指引》的理解，其中，她总结了合同解除权的司法原则、处理金融、保险、信用证、证券等特定行业纠纷的审判倾向，以及不可抗力原则与情势变更原则适用的区别等。最后，王恒女士强调，应逐案分析不可抗力原则的适用。此外，在疫情期间，王女士建议争议解决方式以调解为优先。

若您想了解更多有关广东省高院发布的《关于审理涉新冠肺炎疫情商事案件若干问题的指引》信息，或了解相关法律和政策信息是否会影响您在华业务，请联系广东广悦律师事务所。（官网正在更新中。）