Overseasidol.com — Chinese entertainment company Yuehua Entertainment has responded to the growing controversy involving its artist Wu Xuanyi, following reports that she attempted to terminate her contract.
In an official statement released on April 29, 2026, the company denied several allegations circulating online.
Yuehua firmly rejected claims that it had expelled Wu Xuanyi’s family, prevented her from reviewing her contracts, or handled payments without clear standards.
The agency stated that any disputes with the artist will be handled through legal channels.
However, the statement did not directly address the central issue of the dispute, the controversial “automatic renewal clause” in the contract.
Wu Xuanyi’s 10-year management agreement with Yuehua officially expired on February 24, 2026.
Prior to that, on February 6, she had already submitted a formal notice expressing her intention not to renew the contract.
Despite this, Yuehua insisted on extending the agreement based on a clause stating that if either party does not formally confirm termination in writing, the contract will automatically renew for another year.
This clause is reportedly renewable indefinitely, sparking debate over its legal validity.
Wu Xuanyi’s side has challenged the clause, arguing that it violates legal principles of fairness and mutual consent, and effectively restricts an artist’s right to end a contract.
This fundamental disagreement has led both parties into a legal dispute.
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