Core Viewpoint - The draft amendment to the Enterprise Bankruptcy Law has been submitted for review, aiming to comprehensively revise the existing law to better align with market practices and address prominent issues in the current legal framework [3][4]. Summary by Sections Legislative Context - The current Enterprise Bankruptcy Law, in effect since 2007, has played a significant role in facilitating the orderly exit of business entities, promoting fair competition, and optimizing resource allocation. However, it has become outdated and requires urgent amendments [4]. Draft Details - The draft consists of 16 chapters and 216 articles, with substantial modifications and additions exceeding 160 articles compared to the existing law, indicating a thorough overhaul of the current legal structure [4].

Core Viewpoint - The article emphasizes that the rule of law is the best business environment, highlighting the ongoing legislative process of the Private Economy Promotion Law, which aims to enhance the legal status and protection of the private economy in China [1][2]. Summary by Sections Legislative Progress - The Private Economy Promotion Law draft is undergoing its second review, with improvements noted in its execution and specificity regarding various issues faced by private enterprises [1][3]. Key Highlights of the Law - The law establishes fundamental principles such as equal treatment, fair competition, and equal protection, affirming the legal status of the private economy as a vital component of the socialist market economy [3]. - It includes detailed provisions addressing specific challenges faced by private enterprises, enhancing its enforceability and protective measures [3][4]. Legal and Regulatory Recommendations - There is a suggestion to further refine the legal responsibilities concerning accountability for violations, enhancing the law's deterrent effect [4]. - The principle of "law permits what is not prohibited" should guide private enterprises in their innovative business practices, ensuring they do not fear legal repercussions as long as they operate within legal boundaries [5]. Addressing Enforcement Issues - Recommendations include strictly limiting the authority to freeze corporate bank accounts, ensuring that such measures are necessary, reasonable, and proportionate [8]. - There is a call for clearer regulations regarding the restriction of personal freedom for corporate leaders to prevent operational disruptions [9]. Tackling "Involution" Competition - "Involution" competition is identified as a form of unfair competition, primarily driven by leading companies abusing their market dominance, which threatens the survival of smaller enterprises and harms consumer interests [13]. - A multi-faceted approach is suggested to combat "involution" competition, including strict enforcement of antitrust laws and enhancing corporate credit evaluation systems [14]. Bankruptcy Law Revisions - The article highlights the need for improvements in the bankruptcy law, particularly in the areas of bankruptcy liquidation and reorganization, to better protect creditor and consumer rights while promoting economic development [15].