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The Economist even wrote about force majeure a couple of weeks ago [1]. Gist was that Chinese firms may use it to void contracts, and Chinese courts may uphold
by majos 7y ago
The Economist even wrote about force majeure a couple of weeks ago [1]. Gist was that Chinese firms may use it to void contracts, and Chinese courts may uphold these choices to the frustration of Western companies.
This probably also applies to firms in general now, but the article is specifically about its use in China.
[1] https://www.economist.com/business/2020/02/22/chinese-firms-use-obscure-legal-tactics-to-stem-virus-losses https://www.economist.com/business/2020/02/22/chinese-firms-...
- bsder 7y agoUm, sucks to be them? The fact that doing business in China has no useful legal backstop is quite well known. It's very hard to be sympathetic to people doing business with or outsourcing to China when that is KNOWN to be basically cashing out now and foisting the consequences/risk off onto your successors. Western firms are running with no inventory and no contingency. The Taiwan quake several years ago showed that Western business managers suffered no consequences for that so why should they care?