The Inoculation And Establishment Of Modern Insolvency Regimes In China(1750?1935)

Insolvency is an economic phenomenon in which the debtor's assets are unable to repay maturing debt.Since the Tang Dynasty,the law has had a regulation on the debt default caused by insolvency,but,in actual,this situation is often called "xigu" in legislative and judicial practice of ancient China.By eighteenth century,new insolvency cases occurring in the business field have changed the phenomenon mentioned above.The Qing dynasty began to regulate the insolvency cases of business activities,through the establishment of new laws and regulations.The laws and regulations had led to a result that some of the commercial insolvency cases are separated from the common debt cases and not seen as "the minor matter".In the latter half of the 19th century,the insolvencies of few industry expanded to the whole business field,owning to frequent cases of bad debts in treaty ports.Compared to the previous insolvency cases,these cases of treaty ports are on a larger scale,have more extensive influence,and seriously affect the stability of the local social order.so,the local governments actively deal with bad debts,and launch a series of insolvency rules in this process.Meanwhile,With the extensive and frequent cultural exchanges between China and foreign countries,the knowledge of the foreign insolvency law has been introduced to China.At the beginning of twentieth century,the trial of the insolvency cases were transformed.New business groups-the chamber of commerce is also actively involved in the insolvency liquidation,which changes the businessman's passive situation when insolvency cases are liquidated.In the late Qing Dynasty,the insolvency cases occurred frequently due to the economic crisis.The modern insolvency system emerged in the actual insolvency liquidation.But,the failure of the legislation of insolvency law(1906)become an important setback in the process of establishing the insolvency law in modern China.After the establishment of the Republic of China,the new insolvency law has not been issued,and because of the insolvency case of Ture Thai firm",the insolvency law(1906)was officially abolished by the Ministry of Justice.In order to make up for the lack of insolvency law,the Central Judicial Office guided the trial of insolvency cases and proceed to modern insolvency lawthrough the terms of "case"and "interpretation".At the same time,in the commercial practice,with the system transformation and judicial reform,hearing of the insolvency cases is more legal,is increasingly standardized.However,due to the lack of insolvency law,insolvency cases in commercial practice there are many contradictions and disputes.In addition,the chamber of Commerce has also been given the legal right of commercial arbitration,and actively involved in the process of insolvency disputes.After the establishment of Nanjing national government,insolvency law became an important part of the legal system construction as an essential that maintains the order of the market economy.Whereas the legislation of insolvency law depends on the perfection of the whole legal system.Therefore,the legislative work of insolvency law has not been put on the legislative agenda in the early stage of the Nanjing National Government.Until 1934,with the completion of the judicial construction and the impact of the global economic crisis,the insolvency law legislation was officially launched.In July 1935,the insolvency law is promulgated,which marks the formal establishment of the modern insolvency law in China.From the legislative process and content,insolvency law is a bill with distinct Chinese characteristics.It not only absorbs insolvency law from foreign,but also takes fullyaccount of the specific economicand social environment of China.It can't be ignored that the bill focuses on the maintenance of social order,and there are still many loopholes in the protection of creditors.In summary,early globalization has started the era of China's great turning point.With the influence of institutional environment changes,insolvency cases occur frequently in business activities.China's modern bankruptcy system has been absorbed the fusion of foreign insolvency system.In the end,a modern insolvency law with distinct Chinese characteristics was established.