Move could help clear economic bottlenecks and eliminate ‘zombie enterprises’, while better protecting the rights of stakeholders, economic law professor says
Chinese lawmakers began their first review of draft amendments to the Enterprise Bankruptcy Law on Monday, seeking to address shortcomings in the market-exit mechanism, state media reported.
The amendments, discussed during the ongoing 17th session of the 14th National People’s Congress (NPC) Standing Committee, include more than 160 new or modified articles based on the current law that was enacted 18 years ago and features 216 articles, according to Xinhua.
Calling it the foundational legal framework for a market economy, Xinhua reported that the law has undergone “relatively comprehensive revisions”, though specific details of the changes were not disclosed.
“Since its implementation in 2007, the law has played a key role in facilitating the orderly exit of businesses, promoting fair competition, and optimising resource allocation, but it no longer meets the needs of current economic practices, necessitating urgent revisions,” Xinhua said.
