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An Overview of China's New Bankruptcy Law

By Michael E. Burke
November 06, 2006

After a long gestation China's new Enterprise Bankruptcy Law (Bankruptcy Law) will become effective on June 1, 2007. The Bankruptcy Law was adopted by the Standing Committee of the 10th National People's Congress on Aug. 27, 2006, and will significantly change how Chinese and foreign entities analyze bankruptcy issues. The old law, the State Enterprise Bankruptcy Law (Trial Implementation), issued in 1986, regulated the bankruptcy process only for State-Owned Enterprises (SOEs) and, by the mid-1990s was seen to be in serious need of amendment.

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