Boost for creditors

Overview

After 12 years of discussion, China got a new bankruptcy law this month. Applying to both private companies and state enterprises, the law significantly increases protection for creditors, including the creation of creditors’ committees. This is a major change from the old system, which put the interests of workers first.

Under the new legislation, foreign investors will have a greater chance of receiving some payment if the firms in which they invest go bust or of seeing those...