China Sets Short Timetable for Bankruptcy Law Reform

By Campbell Korff, Partner and Eu Jin Chua, Consultant, Clifford Chance, Hong Kong and Shanghai

Although it has been 10 years in the making, it appears that China will shortly have a bankruptcy regime to rival that of other developed economies – at least on paper. A new draft bankruptcy law has recently been submitted to the standing committee of the National People's Congress. The draft law is yet to be published, but a limited number of copies have been circulated to key organizations, including Clifford Chance. Present indications from the central government are that the draft law may be passed in early 2005. It of course remains to be seen whether such an ambitious timetable is adhered to, but this plan is certainly encouraging.