The Bankruptcy System of Mainland China`s State-Owned Enterprises

Abstract

Beijing has set out two goals for its economic policy in the next fifteen years. One is to transform mainland China’s planned economic system into a market system; the other is to change the emphasis of economic growth from quantity to quality. The achievement of the two goals hinges on the success of the bankruptcy system. Nonetheless, the development of the bankruptcy law since it was enacted in 1986 has proven to be a bumpy road. Confronted with flaws in the law, combined with various other obstacles, Beijing has been forced to slow the implementation of the bankruptcy system and resort to enterprise mergers. The strategy for the enterprise reforms for the near future has been shifted to aiding major enterprises while revitalizing small ones through various methods other than bankruptcy.