China starts new bankruptcy law

Source: BBC

China has introduced a new bankruptcy law that gives creditors precedence over workers when it comes to claiming the assets of failed companies.

The law also means that, for the first time, private Chinese firms that have failed will be allowed to collapse.

Previously they existed in a legal limbo - their assets could not be released and their debts could not be struck from their creditors' books.

The change is seen as another step in China's move to a capitalist economy.



Read more: http://news.bbc.co.uk/2/hi/business/6710669.stm

crumbs.

Wonder when they will officially reinvent themselves.

a physician. She said everyone used to have free healthcare. Then, it went to insurance for the wealthy and cash up front for those without.
Sound familiar?

....less here than meets the eye....not long ago, Worn Buffer on Chuckie 'two-lip' Rose said that the Chinese government/Communist Party has greater than 50% controlling interest in 32 of Chinas' 33 largest corporations....

....not only does the government make money through taxation they also make money by being a controlling shareholder with the added benefit of being able to yank-the-chain on any excess corporate behavior....

....also, if one of these large corporations failed wouldn't the Chinese government be the first in line for the assests insuring money for social benefit?....

....it seems the Chinese government will remain in control of the government instead of having corporations evolving to control the government as we have here....

"The change is seen as another step in China's move to a capitalist economy."

....capitalism, Communist-style, might be the way to go....

It's one area of law that China should NOT change. Especially at a time in which the government is trying to get consumers to spend more money, this does not inspire confidence. There is no shortage of investor confidence. More fundamentally, anti-worker, anti-consumer bankruptcy laws are WRONG!

Need to hire someone? Call PeopleCorp!

worker owned and democratically elected management...
with a huge cash flow enabling guaranteed part-time make-work jobs for otherwise un-contracted-out staff members and a good benefits packages...
employers have to come to PeopleCorp for workers, since everyone already has a job... with PeopleCorp.

It would be interesting to see if such a thing could be made to work... sort of a general guild system.