Bankrupt Policy - China

It seems to be a case of “two steps forward, one step back” in relation to the proposed bankruptcy law. China Law Blog notes:

“Now it has become clear that China’s 2000+ SOEs will not come within the purview of the new laws until at least the end of 2008. This means that until such time as the SOEs are covered by the new bankruptcy laws, their employee wages and health benefits will have priority over any creditor claims…This is bad news and it indicates China’s reformers have lost out on these laws.”