A comparative study of the corporate bankruptsy reorganization law of the U.S. and China

This book does a comparative study on the corporate bankruptcy reorganization law of the U.S. and China with an aim of establishing an efficient reorganization system in China. The study shows that the U.S. and Chinese laws are quite similar in respect of the main structure and that the Chinese law is a product of transplanting the U.S. law. The study finds that some valuable parts of the U.S. law were not properly transplanted, which may cause inefficient effects. For the purpose of getting a deeper understanding of the law, the last Chapter provides a comparison of the reorganization practice of both countries and explores the relationship between the law and the practice. The conclusions draws from study are: the Chinese law and practice are much less developed than its U.S. counterparts; the Chinese law needs to be improved in many aspects; at the early stage of the Chinese practice, the reorganization proceeding is just a device of legally getting rid of unsecured debts. However, taking into account that a market economy based on the rule of law has not been completely established in China and that market-based bankruptcy reorganization law has a history of less than four years, the immature nature is understandable. There is great hope that in the near future, China will develop a mature reorganization legal system that helps and restrains the interested parties to achieve the maximization of the debtor’s overall value and a fair and equitable distribution of the overall value.