China mulls 2nd draft revision on enterprise bankruptcy law

BEIJING, Aug. 25 (Xinhua) -- Chinese lawmakers on Tuesday began reviewing a draft revision to the Enterprise Bankruptcy Law, with the second draft incorporating refinements to rules on individual bankruptcy, bankruptcy protection, restructuring and cross-border bankruptcy.

The current law was enacted in 2007. The first draft of the revision was submitted to the 17th session of the 14th National People's Congress Standing Committee in September 2025 and was later released for public comment.

Based on feedback from the first draft, the second draft adds a new section on pre-restructuring consultation.

In addition, the draft improves rules on cross-border bankruptcy, clarifying the extraterritorial effect of bankruptcy proceedings, the jurisdiction of Chinese courts and mechanisms for international judicial assistance.