In terms of the bankruptcy procedures, relevant rules on the administration and acceptance of the insolvency cases, creditors’ meeting, and supervision system are not complete in the existing legal system, which further weakens the protection of creditors’ rights by the law.
On the other hand, the prolonged impact of COVID-19, especially in services such as eating and drinking as well as accommodations, has been exerting downward pressure on business fixed investment and the employment and income situation. Business fixed investment has been on a declining trend against the background of a deterioration in corporate profits and uncertainties over future developments, both stemming from COVID-19.