Legal Consequences for Chinese-invested Businesses


Due to the occurrence and spread of the new corona virus, which has meanwhile been scientifically labelled “SARS-COV-2”, and the related global preventive steps, Chinese invested businesses are already experiencing the economic repercussions. Only some two months after its discovery, the virus is already impeding international trade and causing uncertainty amongst the affected business community. Far beyond the confines of Hubei province or China itself, regulatory response measures are disrupting supply chains and jeopardizing contractual relationships in many countries and across all industries. China’s entanglement in the global trade matrix, oftentimes providing key components or assembling products to satisfy global demand, has already had a significant impact on the businesses of some of our China Clients. With regard to, for example, the extension of the Spring Festival holidays until 9 February 2020, the entire PRC economy has been alloyed, already in the first quarter of the year. Currently, experts are expecting a drop in GDP growth for 2020 by 1-2 % for the PRC, with plenty of room for an aggravation of circumstances. With new developments arising every day, this newsletter outlines the major consequences of SARS-COV-2 from a legal point of view and offers our Clients a vantage point to gage their own exposure to impending legal risks.

Please find the full report in the Downloads section.