Study On The Improvement Of Chinese New Bankruptcy Law

The bankruptcy means it when some market entity is under the circumstance where he can not pay off his debts and his assets are not enough for the debts due, and the same time he apparently lacks the ability to survive and develop. In order to prevent the loss of the entity from getting even worse, and to protect the rights of the people concerned, the debts will be liquidated according to the provisions of the law with the required procedures in the required sequence and proper proportion. In this way, the market entity can withdraw from the market and some of his legal transaction will be exempted. The bankruptcy is the represent of the nature rule of the Survival of the Fittest in the market society and the ultimate result of the market economy. Different people have different point of views to the legal system of bankruptcy. The negative people concern it that this law helps the debtors to escape from the debts, while the positive persons concern that this bankruptcy policy will not only do good to the re-distribution of the factors of the production and social resources, but also to the re-establishment of the social credit and the arising of the risk attention of the operator. The new bankruptcy law, put in force on June lth,2007, has seen significant progress, compared to the old one, however, in the author’s opinion, to make larger contribution to construction and development of Socialism and to provide more reliable guarantee for economic progress, there are still a number of regulations that need to be standardized and consummated.It is urgent to develop laws of bankruptcy in a more international way to meet the needs after becoming a member of WTO. The international trade has developed so rapidly, and the internationalization speed of production, sale and service is so amazing that the international bankruptcy will become common without any doubt. The research about the solution of conflicts between different parts and protection of every part’s and even every country’s rights when the international bankruptcy occurs have come to the attention of every country. The internationalization of the Chinese bankruptcy is the evitable requirement of the social reality. Only if the bankruptcy law be revised according to the reality, can the law own the power to regulate the economy. On March1th2005, the new Bankruptcy Law took effect in Japan, our neighbor, which has over100-year experience of executing bankruptcy laws that are worthy of reference, we have to admit, after modification and optimized by several generations. On the basis as specified above and by research and comparison,I will compare the main differences of the bankruptcy laws of these two countries, and overcome our weakness by acquiring their strong points. I really hope that some of my efforts will provide with any help for the internationalization road of our bankruptcy law in the future. And it will be well appreciated if this thesis can arouse more valuable ideas on the problems of the bankruptcy law calling for solution and perfection.