Core Viewpoint - The draft amendment to the Enterprise Bankruptcy Law, proposed for the first time after 18 years, aims to modernize the bankruptcy legal framework, addressing practical challenges and enhancing the system's effectiveness in risk prevention and resolution [1][4]. Summary by Sections Current Legal Shortcomings - The existing bankruptcy law has significant limitations, including a narrow scope of application, an incomplete administrator system, and inadequate protection for creditor rights [2][3]. - Only 0.5% of companies were deregistered due to bankruptcy in 2024, indicating underutilization of the bankruptcy law [2]. Key Features of the Draft Amendment - The amendment expands the law from 12 chapters and 136 articles to 16 chapters and 216 articles, adding over 160 new and modified provisions [4]. - It emphasizes the importance of bankruptcy law as a fundamental tool for market exit and risk management, aiming to optimize the business environment and deepen supply-side structural reforms [4][5]. Financial Institutions - A new chapter specifically addressing the bankruptcy of financial institutions has been added, reflecting their unique characteristics and the need for differentiated arrangements [6][7]. - The amendment includes provisions for special debt repayment rules and enhances the connection between administrative risk management and judicial bankruptcy processes [6][7]. Small and Micro Enterprises - The draft introduces a special bankruptcy procedure for small and micro enterprises, aimed at improving efficiency and reducing costs associated with bankruptcy proceedings [10][11]. - This new procedure allows for quicker resolution of cases, with specific provisions for simplified management and expedited timelines [11]. Management and Oversight - The amendment strengthens the role and responsibilities of bankruptcy administrators, ensuring they operate independently while being supervised by creditors [15][16]. - A proposed "Bankruptcy Guarantee Fund" aims to address the issue of costs in bankruptcy cases where assets are insufficient to cover expenses [15][16]. Preventing "Debt Evasion" - New temporary measures are introduced to prevent debtors from transferring or hiding assets during the bankruptcy application process, enhancing the integrity of the proceedings [17][18]. - The draft also imposes strict obligations on debtors and their management to disclose financial information accurately and prohibits unnecessary expenditures during bankruptcy [18].

Group 1 - The National People's Congress (NPC) Standing Committee reviewed 18 legal drafts and passed 6, including the Atomic Energy Law and the Public Health Emergency Response Law, which are significant for sustainable development and public health safety [1][2] - The National Park Law was established to comprehensively regulate the construction, protection, and management of national parks, promoting high-quality development in this area [1] - The revised Arbitration Law aims to enhance the arbitration legal system in China, ensuring fair and timely resolution of economic disputes [1] Group 2 - The draft of the National Unity and Progress Promotion Law was initially reviewed, aiming to solidify the awareness of the Chinese national community and enhance national cohesion [2] - The meeting also reviewed the draft amendments to the Cybersecurity Law and the Bankruptcy Law, indicating ongoing legislative efforts in these areas [2] - The NPC Standing Committee received a report on the "14th Five-Year Plan" preparation, which will inform future legislative and governmental planning [2]

Group 1 - The 17th meeting of the Standing Committee of the 14th National People's Congress (NPC) is scheduled to be held in Beijing from September 8 to 12 [1] - The agenda includes the review of various draft laws such as the Atomic Energy Law, Public Health Emergency Response Law, and Food Safety Law [1] - The meeting will also discuss reports on the execution of the national economic and social development plan, budget execution, and government debt management for 2024 [2] Group 2 - The meeting will address the implementation of the Labor Union Law and the situation regarding the integration of culture and tourism [2] - Reports on climate change response, water resource tax reform pilot, and the analysis of economic operation in 2023 will be reviewed [2] - The meeting will include discussions on the qualifications of individual representatives and various appointment and removal proposals [2]