New bankruptcy law reviewed
22 June 2004
The Standing Committee of the 10th National People's Congress (NPC) reviewed a draft bankruptcy law covering both state owned enterprises (SOEs) and private firms. The new law will include exceptions for about 2,000 money-losing SOEs, which will continue to receive government support over the next three to five years, after which they will be phased out. Analysts said that China's current bankruptcy legislation, enacted in 1986, gives insufficient protection to creditors and does not cover SOEs in enough detail.