CHINA Law and Practice Contributed by: John Wang, Xu Jun, Song Jia and Zhao Yuxuan, Wang Jing & Co
In recent years, certain PRC individuals and enti - ties have been sanctioned by some foreign coun - tries in relation to commercial trading, and they have attempted to seek remedy by legal actions. In general terms, the PRC government does not recognise the enforceability of any unilateral trade sanctions (including those imposed in the context of the Russia-Ukraine war) imposed by any foreign country. If any such sanction applies discriminatory and restrictive measures against PRC individuals and entities resulting in interfer - ence with public interests, the PRC will consider taking corresponding countermeasures. Furthermore, if unjustified extraterritorial for - eign trade sanctions are applied against PRC individuals and entities, they may apply to the commerce department of the State Council for exemption from compliance with a prohibition order. In 2021, China enacted the Anti-foreign Sanc - tions Law, empowering the Ministry of Foreign Affairs and other relevant authorities to impose sanctions on foreign entities or individuals. Some sanctions have already been imposed against entities and persons who promoted sanctions against Chinese entities, and who are involved in military sales to Taiwan. 8.4 International Conflict(s) PRC law provides for grounds for failing to per - form a contract due to force majeure or hardship. Article 180 of the Civil Code states: “If civil obligations fail to be performed due to force majeure, no civil liability shall be borne. Where the laws provide otherwise, such provi - sions shall prevail.
Force majeure is unforeseeable, unavoidable and insurmountable objective events”. Article 533 of the Civil Code states: “After a contract has been concluded, if the basic conditions of the contract have undergone a significant change which is unforeseeable by the parties at the time it was concluded and which does not belong to commercial risks, and it is clearly unfair for the party concerned to con - tinue to perform the contract, the party adversely affected may renegotiate with the other party. If negotiation fails within a reasonable period of time, the parties may request a people’s court or an arbitration agency to modify or rescind the contract. The people’s court or arbitration agency shall, in light of the actual circumstances of the case, amend or rescind the contract under the princi - ple of fairness”. The determination of whether an event consti - tutes force majeure or hardship is contingent on the specific circumstances of each case. Reported cases involved Ukraine War, COV - ID-19 pandemic, etc. However, in such cases, the courts have applied a stringent standard when assessing the application of force majeure and hardship doctrines to disputes – eg, where they arose from the Ukraine war. 9. Additional Maritime or Shipping Issues 9.1 Other Jurisdiction-Specific Shipping and Maritime Issues PRC judicial practice is controversial with regard to certain seafarer-related disputes. In 2020, the PRC Supreme Court promulgated Provisions on
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