Chinese Characteristics and Universalist Insolvency Ideals

This article argues that China can adopt the UNCITRAL Model Law on Cross-Border Insolvency, as it is soft law that could be adopted with modifications. It is necessary for China to build a cross-border insolvency framework, based on the Model Law as it is now at the heart of the global trading and investment network. Adopting the Model Law can improve certainty, access and fairness of treatment in the Chinese bankruptcy procedure and encourage both inbound and outbound investments. In particular, such a framework will facilitate investments under the Belt and Road Initiative. This article suggests, however, that effective implementation of the Model Law will depend on judicial interpretations of the domestic courts as guided by the Supreme People's Court.