China Issues Over 6,400 Force Majeure Slips To Virus-hit Companies

Mohammad Ali (@ChaudhryMAli88) Published March 26, 2020 | 02:35 PM

China has issued more than 6,400 force majeure certificates to help companies avoid penalties for not being able to meet contractual obligations amid novel coronavirus outbreak

BEIJING, (UrduPoint / Pakistan Point News - 26th Mar, 2020 ) :China has issued more than 6,400 force majeure certificates to help companies avoid penalties for not being able to meet contractual obligations amid novel coronavirus outbreak.

The China Council for the Promotion of International Trade (CCPIT) has issued 6,454 certificates as of Wednesday, covering a total contract value of 632.1 billion Yuan (about 89.42 billion U.S. Dollars).

The epidemic has delayed production for some companies as quarantine measures held back many workers from returning to their posts.

Companies that present such certificates to their clients could defer fulfillment of orders without facing legal liabilities, thus better performing contracts and maintaining supply chain stability.

Nearly 60 percent of contracts were expected to be retained through negotiation on delays, said the CCPIT.

China's foreign trade of goods fell 11 percent year on year in the first two months of this year amid disruptions caused by the coronavirus outbreak.

With strong competitiveness, a stable industrial chain and rapid development of new business formats, China's foreign trade sector will remain sound growth momentum in the long term, said Gao Yan, head of the CCPIT.