On May28, 2020, the 13th National People’s Congress passed the Civil Code,which will take effect on 1 January 2021, and it will abolish, among otherlaws, the General Provisions of the PRC Civil Law, the PRC Marriage Law, thePRC Contract Law, etc. The new Civil Code is an important milestone in thedevelopment of China’s legal system because it not only codifies thefundamental rules of law on civil and commercial matters but also strengthensthe protection of citizens’ rights.
Thespeakers, att. Eric Chen and Mr. Nicola Caiazzo, from Wang Jing & GH LawFirm introduced the Civil Code and its implication on foreign-relatedcontracts.
FirstlyMr. Caiazzo introduced the code focusing on the decision of the Chineselegislator to develop the Chinese rule of law, giving at the country legalsystem more stability. Mr. Caiazzo said that the code is a rite of passage forthe People’s Republic of China, a sign of maturity of the legal system, and atool to guide the country’s future development.
Then Mr.Caiazzo explained also all the historical passage until the promulgation of thecode, from the first draft under the Qing Dynasty to the final adoption of thecode made by the National People Congress at its annual session in May 28th,2020.
Thereafteratt. Eric Chen introduced contract provisions and how such regulations may affectforeign parties. Moreover, Mr. Eric focused on the principles of fairnessexplaining that the parties should pay more attention to the new regulation incase standard clauses in the contracts will apply. Another matter thatattracted the attention of the audience was the doctrine of the “change ofcircumstance” and the force majeure which are both regulated in the new code.
Lastbut not least, att. Eric Chen ended his presentation by giving many interestingpractical advices and informing the audience about the main precautions that anyinvestors have to take when they invest in China, including the importance ofthe company chop, quality standards and clear liquidated damages.
Formore information about the topics covered in the webinar, feel free to contactus directly by email at fornari@wjngh.cn or web@wjngh.cn
