Penn State International Law Review

First Paragraph

On August 27, 2006, the Standing Committee of the National People's Congress adopted the Corporate Bankruptcy Law of the People's Republic of China. The new bankruptcy law became effective on June 1, 2007 and replaced the existing enterprise bankruptcy law that was enacted in 1986. Modeled after Western bankruptcy laws and standards, the new Corporate Bankruptcy Law is a significant step forward in Chinese bankruptcy law. This article begins in Part I with an examination of China's new bankruptcy law through the lens of the UNCITRAL Legislative Guide to Insolvency Law. Part II examines the history of bankruptcy law in China. Part III describes the provisions of the new law, and where appropriate, discusses the similarities and differences between China's new bankruptcy law and the bankruptcy law of the United States ("U.S."). Part IV of this article examines the UNCITRAL Legislative Guide to Insolvency Law and its application to the new Chinese bankruptcy law. Finally, Part V discusses the implications of these comparisons, focusing on improvements of the new law over China's prior bankruptcy law, issues raised by the Legislative Guide comparison, and general areas of concern with China's new bankruptcy law.