Government measures in key jurisdictions 5th edition - Flipbook - Page 35
China
All employers that suffer serious difficulties in production and operation due to the outbreak
may apply for deferred payment of contributions for all five types of social insurance until
the end of December 2020. Approved employers would not be liable for late payment fees.
On July 15, 2020, the Ministry of Human Resources and Social Security, together with the
Ministry of Education and the State Council Leading Group Office of Poverty Alleviation and
Development announced measures to help students from poor families who graduate from
colleges this year secure employment. These measures include providing skill training and
career development advice.
•
During the Covid-19 outbreak, courts have allowed enterprises in bankruptcy
proceedings to take measures such as resumption of production and operation or
disposal of assets related to epidemic prevention and control, which has contributed
to fighting the epidemic as well as increasing the creditors' debt repayment ratio.
•
For additional information on measures taken related to enterprises in bankruptcy
proceedings during the Covid-19 epidemic in Chinese, please click here.
•
On April 15 2020, the Supreme People’s Court issued the opinions on promoting
lawful and efficient adjudication of bankruptcy cases, which provides various
measures to improve the efficiency and reduce the cost of bankruptcy proceedings.
•
On May 15 2020, the Supreme People’s Court issued the second guiding opinions in
adjudicating civil cases involving the Covid-19 epidemic. The Supreme People’s Court
asks the courts at different levels to facilitate consultation between the debtor and
creditor if a creditor petitions for bankruptcy of an enterprise that fails to meet its debt
repayment obligation due to the Covid-19 epidemic. The courts are asked to avoid
initiating bankruptcy proceedings for enterprises that fail to meet debt repayment
obligation solely because of the impact of Covid-19 epidemic by evaluating the cash flow
and asset liability ratio of these enterprises during this special period of time only.
Contractual
Issues
•
Performance of contractual obligations could be delayed due to the Covid-19
Epidemic. Here is an analysis about if a developer can claim exemption from liability for
the breach of contract arising from a delay in delivering houses on schedule.
What measures
have been taken
to reinforce
contracts?
•
In practice, many developers see epidemics, major public health events, universal
epidemic diseases, governmental policies and decrees relating to construction as
force majeure events, or at least situations where developers are specifically entitled to
postpone the time of delivery as agreed upon in their sales contracts. Thus, based on the
principle of autonomy of will, sellers and purchasers can enjoy and undertake the rights and
obligations to postpone the time of delivery as agreed upon in their contracts if it is valid.
•
If there is no valid agreement, developers can apply for a force majeure or use the
principle of change of circumstances. However, the legal consequences and outcome of
such a declaration will be determined on a case-by-case basis.
•
Special Series regarding the Legal Impact of the Covid-19 Epidemic on the Real
Estate Industry. Topic One: the impact of the Covid-19 epidemic on the sale of
commodity housing.
Insolvency
Has the
government made
any changes
to insolvency
legislation?
Government measures in key jurisdictions
35
