The 2006 PRC Enterprise Bankruptcy Law: The Wait is Finally Over

Abstract

The lengthy Chinese bankruptcy law reform process that began in 1994 ended on 26 August 2006, with the enactment of the PRC Enterprise Bankruptcy Law. This article discusses five controversial areas that were debated throughout the drafting process – the scope of the law, bankruptcy administration, corporate reorganisation, priorities and the protection of employee rights, and cross-border issues – and how they have been resolved in the new law. The article also discuses recent developments since the new law came into operation on 1 June 2007.