- China Business Blog - http://www.chinabusinessservices.com -

A Bankrupt Policy?

It seems to be a case of “two steps forward, one step back” in relation to the proposed bankruptcy law [1]. China Law Blog notes [2]:

There is no doubt that the move to introduce the bankruptcy law is a good thing (and that this latest news is a set-back), but it is not unusual for the Chinese government to issue plans, take stock of feedback, and then make changes before implementation. The difficulty here is in balancing the needs of workers with the needs of business, and there are no easy answers to be found in the midst of China’s complex economic and political mix.

At least there is a timetable in place. But we will have to wait and see what 2008 holds, and whether those remaining SOEs will have their houses in order in time for the reforms to push through successfully.

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