The Belt and Road Initiative, China’s Cross-Border Insolvency Law and the UNCITRAL Model Law on Cross-Border Insolvency
Chinese Journal of Comparative Law, 2020
22 Pages Posted: 21 May 2020 Last revised: 10 Aug 2020
Date Written: March 8, 2020
This article, through examining the special features of cross-border insolvency affecting the Belt and Road (BRI), explains that it is crucial for China to ensure that its cross-border insolvency law is fit for the purposes of the BRI. The current law is unsatisfactory, as may be seen in Hanjin Shipping’s decision not to seek recognition of its Korean restructuring proceeding in China. China wants to co-operate more in cross-border insolvency, but it is concerned that recognising foreign insolvency proceedings will prejudice China’s interests. This article explains that the logic and limits of the UNCITRAL Model Law on Cross-Border Insolvency is enlightened self-interest, which leads to recognition being very limited and distinguished from relief, and relief being based on domestic law. Thus, it argues that adoption of the Model Law will not prejudice China’s interests.
Keywords: Belt and Road Initiative, Comparative Cross-border insolvency law, China’s cross-border insolvency law, UNCITRAL Model Law on Cross-Border Insolvency, Logic and limits of UNCITRAL Model Law on Cross-Border Insolvency
JEL Classification: K22, K33
Suggested Citation: Suggested Citation