The Dream Factory of China

A total of 18 legal risk-prevention guidelines relevant to industries such as finance, logistics, information technology, real estate, foreign investment and commerce made by the Qianhai Legal Professional Community are rolled out to guide enterprises in fighting COVID-19.

At present, the first legal risk-prevention guideline on enterprises subject to the enforcement has been issued, which is aimed to help anti-epidemic enterprises relieve finance stress and restore normal production and operation.

According to the first guideline, the Qianhai Cooperation Zone People’s Court suspended the enforcement of arrear payments in a case involving a public hospital and a pharmaceutical company in Hunan Province, showcasing the court’s determination to provide judicial support to those fighting against the COVID-19 outbreak.

In the case, the hospital and the pharmaceutical company were urged to pay 20 million yuan (US$2.8 million) in arrear to an international commercial factoring company.

However, the sudden coronavirus outbreak has forced the hospital to invest a lot of manpower, medical supplies and finances in fighting COVID-19, which has directly led to the suspension of the arrear payments.

As the only designated hospital fighting the disease in the local area, it is handling three confirmed cases, 60 suspected cases and over 900 fever patients.

As the other party subject to the enforcement, the pharmaceutical company has also invested a large amount of money on medical equipment and supplies, leaving scarce capital.

Consequently, the court organized an online mediation for the litigants, and an agreement to delay the payment of the arrears was reached.

Anti-epidemic enterprises refer to legal persons or other unincorporated organizations that engage in epidemic treatment, prevention and control, including frontline hospitals and clinics, and medical enterprises specializing in the production of medicine, medical equipment and medical supplies.

The Qianhai Legal Professional Community consists of Shenzhen Qianhai Cooperation Zone People’s Court, the Qianhai Belt and Road Legal Services Federation, China Commercial Law Firm, China Commercial Lam Lee Lai (Qianhai) Lawyers, and Sincere Qianhai Law Offices.