Government measures in key jurisdictions 3rd edition final - Flipbook - Page 37
China
Property
Have any
changes been
made to the
laws around
property,
rent and
enforcement?
Some local governments have introduced support and guidance policies for enterprises affected by the
Covid-19 Epidemic, which also include the adjustment of lease agreement relationships. For instance,
the Municipal Government of Beijing issued Several Measures on Dealing with the Impact of Covid-19
Epidemic and Promote the Sustainable and Healthy Development of Medium, Small and Micro
Enterprise on February 5, 2020.
According to those measures, for medium, small and micro enterprises which rent properties
from city-owned or district-owned enterprises:
•
the rent in February shall be exempt if such enterprises (i) rent properties for the purpose of
manufacturing or operations; (ii) keep operating or stop operating in accordance with the
policies for the prevention and control of the Epidemic; and (iii) do not lay off employees or only
lay off few employees,
•
the rent in February shall be reduced to 50% of the original amount if such enterprises rent
properties for office work,
•
it is encouraged that landlords (property owners) reduce or exempt the rent of other leased
properties, which is subject to the negotiation of the contract parties, and
•
for landlords that reduce or exempt rent for medium, small and micro enterprises, the municipal
or district government would provide subsidies.
Although the policies above are only applicable to qualified “small, medium and micro enterprises”,
it may also act as a guide for other leasing parties.
Special Series regarding the Legal Impact of the Covid-19 Epidemic on the Real Estate Industry.
Topic Three: the impact of the Covid-19 epidemic on property lease agreements.
On May 9, the National Development and Reform Commission and seven other central government
agencies jointly issued a policy to further support micro and small-sized enterprises and businesses
owned by individuals in the service industry to ease the burden of rental payment for coping with the
Covid-19 epidemic, including measures such as:
Litigation
•
exemption of rental payment for three months in the first half of the year for those micro and
small-sized enterprises and businesses owned by individuals in distress in the service industry if
the property are owned by the state,
•
property owners other than the state are encouraged to exempt or delay the collection
of rent, and
•
local governments should establish and improve the mediation and resolution mechanism for rental
dispute and help the parties to resolve disputes through consultation.
•
A number of courts and arbitration institutions issued notice to encourage online
filing and submission of materials. For example, court in Shanghai encouraged
parties to initiate mediation and handle litigation related matters through online and
mobile platforms. On January 28, 2020, the China International Economic and Trade
Arbitration Commission issued a notice encouraging parties to submit arbitration
applications and related documents through the online filing system.
•
For additional information on the development of diversified dispute resolution
mechanism to deal with emergencies in Chinese, please click here.
Are the courts
operating?
Government measures in key jurisdictions
37