The Historical Process and Contemporary Insights of China's Bankruptcy System
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The establishment of China's bankruptcy system occurred during the period of legal transplantation from the late Qing Dynasty to the Republic of China. Three bankruptcy laws were formulated at the national level, but only two were officially enforced: the 'Great Qing Bankruptcy Law' in 1906 and the 'Bankruptcy Law' in 1935. The development of bankruptcy laws in modern China encountered several setbacks mainly due to the clash between introduced Western legal concepts and the contemporary Chinese social environment, facing opposition from various sectors of society. The most contentious discharge system has consistently been retained by legislators and gradually accepted over time. Thus, the roots of China's bankruptcy system trace back historically to the “Qing Bankruptcy Law” of 1906 and the “Bankruptcy Law” of 1935. This study focuses on the laws applicable in these two periods, examining how the bankruptcy system operated and the subsequent influence of introducing Western bankruptcy laws. It's noteworthy that in 1906, when China enacted the “Qing Bankruptcy Law”, certain aspects incompatible with the Chinese context from Western legislation were adopted, leading to various issues. Exploring the evolution of China's bankruptcy system from a legal perspective can offer insights for future developments in China's bankruptcy legislation.
Abstract
The establishment of China's bankruptcy system occurred during the period of legal transplantation from the late Qing Dynasty to the Republic of China. Three bankruptcy laws were formulated at the national level, but only two were officially enforced: the 'Great Qing Bankruptcy Law' in 1906 and the 'Bankruptcy Law' in 1935. The development of bankruptcy laws in modern China encountered several setbacks mainly due to the clash between introduced Western legal concepts and the contemporary Chinese social environment, facing opposition from various sectors of society. The most contentious discharge system has consistently been retained by legislators and gradually accepted over time. Thus, the roots of China's bankruptcy system trace back historically to the “Qing Bankruptcy Law” of 1906 and the “Bankruptcy Law” of 1935. This study focuses on the laws applicable in these two periods, examining how the bankruptcy system operated and the subsequent influence of introducing Western bankruptcy laws. It's noteworthy that in 1906, when China enacted the “Qing Bankruptcy Law”, certain aspects incompatible with the Chinese context from Western legislation were adopted, leading to various issues. Exploring the evolution of China's bankruptcy system from a legal perspective can offer insights for future developments in China's bankruptcy legislation.
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