According to the Guarantee Law of People's Republic of China (PRC):
Article 89 The parties may agree that one party shall pay the deposit and the final payment to the other party as security for the creditor's rights. If the party paying the down payment and the final payment fails to perform the agreed debts, it has no right to demand the return of the down payment; If the party receiving the deposit fails to perform the agreed debt, it shall return the deposit twice.
Extended data:
According to the Contract Law of People's Republic of China (PRC)
Article 116 Where the parties have agreed on both liquidated damages and deposit, if one party breaches the contract, the other party may choose to apply the liquidated damages or deposit clause.
Article 117 Where a contract cannot be performed due to force majeure, it shall be exempted from liability in part or in whole according to the influence of force majeure, unless otherwise stipulated by law. If force majeure occurs after the delay in performance, the parties concerned cannot be exempted from their responsibilities.
Force majeure as mentioned in this Law refers to unforeseeable, unavoidable and insurmountable objective circumstances.
Article 118 If one party is unable to perform the contract due to force majeure, it shall notify the other party in time to reduce the possible losses to the other party, and shall provide proof within a reasonable time.
Article 119 After one party breaches the contract, the other party shall take appropriate measures to prevent the loss from expanding; If appropriate measures are not taken to expand the losses, no compensation shall be claimed for the expanded losses. The reasonable expenses incurred by the parties to prevent the loss from expanding shall be borne by the breaching party.