{"id":4113,"date":"2021-06-08T13:30:11","date_gmt":"2021-06-08T13:30:11","guid":{"rendered":"https:\/\/www.theccgway.com\/?p=4113"},"modified":"2023-01-05T12:41:18","modified_gmt":"2023-01-05T12:41:18","slug":"ccg-germany-impact-on-supply-chain-due-to-coronavirus","status":"publish","type":"post","link":"https:\/\/www.theccgway.com\/zh-hans\/2021\/06\/08\/ccg-germany-impact-on-supply-chain-due-to-coronavirus\/","title":{"rendered":"CCG GERMANY: Impact on supply chain due to coronavirus"},"content":{"rendered":"\r\n

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The coronavirus crisis has clearly become an economic challenge for the whole world. The spread of the virus represents both a negative supply shock and a negative demand shock across the economy at large. Through a variety of intermediate inputs in economies with a strong division of labour, this quickly leads to production restrictions in other companies and is ultimately detrimental to the smooth functioning of international value chains.<\/p>\r\n\r\n\r\n\r\n

Since January, waves of city-wide closures and quarantines in China have shut down factories in the world\u2019s second-largest economy, disrupting supply chains globally. Economies in Europe can clearly feel this. We can already see that a delay in delivery is happening. This can be traced back to a shortage of goods, production capacity and supplies. Also, export restrictions as a consequence of the coronavirus crisis play its role in this development.<\/p>\r\n\r\n\r\n\r\n

As a reaction to this unknown situation companies will tend to reduce their business relations especially with Chinese goods. At the same time, it should be considered how to deal with existing contracts. From the legal perspective, it has to be examined whose law is applicable. Companies should assess if an agreement conferring jurisdiction was concluded for the benefit of only one of the parties. Both German law and Chinese law have the legal institution of material changes to the basis of the contract. This legal institution plays an important but at the same time subsidiary role. Therefore, it has to be evaluated very closely if a company can rely on this.<\/p>\r\n\r\n\r\n\r\n

It became evident that problems in customs clearance processes, export control and statutory management requirements are the results of this new and unknown situation. A breach of obligations or interference due to force majeure could occur.<\/p>\r\n\r\n\r\n\r\n

It now appears likely that some places will experience a local resurgence as restrictions are lifted and economies reopen. However, it will probably take months to ramp up operations and catch up on lost output.\u00a0 So, it is important to take actions now. Therefore, we would like to give you the following recommendations to help you with this situation:<\/p>\r\n\r\n\r\n\r\n