On May 28, 2020, the 13th National People’s Congress passed the Civil Code, which will take effect on 1 January 2021, and it will abolish, among other laws, the General Provisions of the PRC Civil Law, the PRC Marriage Law, the PRC Contract Law, etc. The new Civil Code is an important milestone in the development of China’s legal system because it not only codifies the fundamental rules of law on civil and commercial matters but also strengthens the protection of citizens’ rights.
The speakers, att. Eric Chen and Mr. Nicola Caiazzo, from Wang Jing & GH Law Firm introduced the Civil Code and its implication on foreign-related contracts.
Firstly Mr. Caiazzo introduced the code focusing on the decision of the Chinese legislator to develop the Chinese rule of law, giving at the country legal system more stability. Mr. Caiazzo said that the code is a rite of passage for the People’s Republic of China, a sign of maturity of the legal system, and a tool to guide the country’s future development.
Then Mr. Caiazzo explained also all the historical passage until the promulgation of the code, from the first draft under the Qing Dynasty to the final adoption of the code made by the National People Congress at its annual session in May 28th, 2020.
Thereafter att. Eric Chen introduced contract provisions and how such regulations may affect foreign parties. Moreover, Mr. Eric focused on the principles of fairness explaining that the parties should pay more attention to the new regulation in case standard clauses in the contracts will apply. Another matter that attracted the attention of the audience was the doctrine of the “change of circumstance” and the force majeure which are both regulated in the new code.
Last but not least, att. Eric Chen ended his presentation by giving many interesting practical advices and informing the audience about the main precautions that any investors have to take when they invest in China, including the importance of the company chop, quality standards and clear liquidated damages.
For more information about the topics covered in the webinar, feel free to contact us directly by email at fornari@wjngh.cn or web@wjngh.cn
