Considering potential shortcomings, discussions on modifications to China's bankruptcy law are underway

Chinese lawmakers began reviewing draft amendments to the Enterprise Bankruptcy Law on Monday during the 17th session of the 14th National People's Congress (NPC) Standing Committee. The amendments aim to address the needs of current economic practices, as the current law, enacted 18 years ago, no longer meets the demands of modern economic practices.

Associate Professor Yuan Jia of Sichuan University supports the amendments, emphasizing their importance in China's economic slowdown and transition towards a technology-driven, high-quality economy. Yuan Jia believes that the revisions will better protect the rights of stakeholders and help clear economic bottlenecks, eliminating 'zombie enterprises' that hinder growth and innovation.

The law, which serves as the foundational legal framework for a market economy, has played a key role in facilitating the orderly exit of businesses. It has also promoted fair competition, ensuring a level playing field for all businesses. However, Yuan Jia does not discuss the specific details of the changes in the amendments or the role of the amendments in promoting fair competition or optimizing resource allocation.

The revisions to the law have been relatively comprehensive, with more than 160 new or modified articles. Unfortunately, specific details of these changes were not disclosed. Yuan Jia also does not mention the number of new or modified articles in the amendments.

Xinhua reported that the law is crucial for businesses facing operational difficulties or lagging in technological innovation to exit the market systematically. Revising the law is expected to help these businesses navigate the complexities of bankruptcy proceedings more efficiently and effectively.

It is worth noting that there is no available information on specific draft amendments to the UnternehmensInsolvenzGesetz (Corporate Insolvency Law) currently being discussed by Chinese legislators. The search results mainly cover German legislative changes related to corporate due diligence laws and insolvency statistics in Germany, but not Chinese insolvency law amendments.

In conclusion, the amendments to the Enterprise Bankruptcy Law in China are a significant step towards modernizing the legal framework for a market economy. While the specific details of the changes are not yet clear, the general aim is to better protect the rights of stakeholders, promote fair competition, and facilitate the orderly exit of businesses.