As the market economy evolves, the law has become out dated in terms of coverage, liquidation and restructuring arrangement. Despite subsequent amendments and legal interpretations of the law when it was applied in the GITIC case, the law in its present form cannot provide the standard financial discipline and constraints required by socialist market economy.
I learnt about some of the arguments over the new draft of the law. My concerns lie in four aspects. First, the process of liquidation, which involves giving priority to secured claims. Some are in favor of employees’ entitlements being paid ahead of the secured claims.