Globalized cross-border insolvency law: the roles played by China

Zhang, Z. (2022) Globalized cross-border insolvency law: the roles played by China. European Business Organization Law Review, 23(3), pp. 735-780. (doi: 10.1007/s40804-021-00222-2)

[img] Text
278793.pdf - Published Version
Available under License Creative Commons Attribution.

1MB

Abstract

This study empirically investigates China’s participation in the globalized cross-border insolvency collaboration system. It is the first time for the development of China’s cross-border insolvency law to be examined against the background of private international law on foreign judgment recognition and enforcement. The findings of this article reveal that foreign bankruptcy representatives face considerable difficulties in satisfying the treaty and reciprocity requirements when seeking judicial assistance from China, and that local protectionism in favour of China’s state-owned and state-linked companies undermines foreign bankruptcy representatives’ confidence in approaching China’s courts for support. Although there are several court recognitions of foreign bankruptcy judgments in China, this article finds that they are only used to acknowledge the legal status of foreign bankruptcy representatives to meet the demands of government authorities; Chinese courts have not taken a substantial step in recognizing a foreign bankruptcy judgment so as to bar individual creditors’ action in the interest of a foreign bankruptcy proceeding. On the contrary, for Chinese bankruptcy representatives seeking assistance abroad, they could take advantage of the liberal judicial infrastructure, especially of some advanced jurisdictions, to obtain recognition and relief.

Item Type:Articles
Additional Information:This work was supported by the UK Economic and Social Research Council [ES/P004040/1].
Status:Published
Refereed:Yes
Glasgow Author(s) Enlighten ID:Zhang, Dr Zinian
Authors: Zhang, Z.
College/School:College of Social Sciences > School of Law
Journal Name:European Business Organization Law Review
Publisher:Springer
ISSN:1566-7529
ISSN (Online):1741-6205
Published Online:30 August 2021
Copyright Holders:Copyright © 2021 The Author
First Published:First published in European Business Organization Law Review 23(3): 735-780
Publisher Policy:Reproduced under a Creative Commons license

University Staff: Request a correction | Enlighten Editors: Update this record