Extraterritorial Effects Of Bankruptcy Declaration

With the practice of the Reform and Opening-up policy, China has become increasingly important in the international economic trade, especially after China’s entrance to WTO, which makes its economic communication with other countries more closely. While the increasing of foreign investments also causes a series of problem, the bankruptcy can’t be avoided. What’s more, transnational corporation’s bankruptcy is confronted with how to apply in the jurisdiction to bankruptcy law and by any court as well as whether to be admitted in extraterritorial world or not. These are necessary problems that every transnational company bankruptcy has to face with.This paper has five chapters in addition to preface and conclusion. The first chapter is the origin and development of extraterritorial effects of bankruptcy declaration. The second chapter is the legal basis and value orientation of extraterritorial effects of bankruptcy declaration. The third chapter uses comparative analysis to introduce differences on the knowledge of extraterritorial effects of bankruptcy declaration. In detail, the author analyzes theoretical basis, advantages and disadvantages of the universalism, territorialism and eclecticism. The fourth chapter introduces some common solutions of cross-border insolvency cases in some countries and regions. Such as, stipulating cross-border insolvency system provisions in domestic law; concluding bilateral / multilateral treaties; having a international cooperation on the basis of the United Nations "Transnational Insolvency Law". The author put forward some suggestion of extraterritorial effects of bankruptcy declaration on the basis of previous chapters. First, transit territorialism to universalism. Second, abolish the principle of reciprocity. Third, make a list of non-recognition of foreign insolvency proceedings circumstances. Fourth, take the form of cross-border insolvency cooperation protocol.At the end of the article, the author calls that our country can learn from the "Model Law" and other advanced experience. Also, we can sign bilateral / multilateral treaties with other countries or regions to promote the international cooperation between China and other countries in cross-border insolvency cases and improve our cross-border insolvency system.