PRC Enterprise Bankruptcy Law

The Bankruptcy Law applies to all entities that hold legal person status, including private companies, foreign enterprises, limited liability companies, and companies limited by shares, as well as state owned enterprises (SOEs). However, the Bankruptcy Law does not apply to insolvent partnerships and individuals and at present, there is no personal bankruptcy system in China. The Bankruptcy Law provides for structured regimes of bankruptcy, restructuring and conciliation and brings China’s bankruptcy legislation more in line with international practice.