China Considers Western-Style Bankruptcy Laws

Law360, New York (January 11, 2006, 12:00 AM EST) -- Lawmakers in the People's Republic of China are considering dramatic changes to the country’s bankruptcy laws, addressing pressure to conform to international financial standards after joining the World Trade Organization in December 2001.

The draft changes would complement China’s current drive toward Western-style market economy by empowering the country’s judicial system, discouraging underperforming loans to state-run companies and treating state and private firms equally.

The changes, part of the new Enterprise Bankruptcy Law, were first proposed in 2004 by the National People’s Congress’ Fiscal and Economics...
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