The revised draft of the Corporate Bankruptcy Law was submitted to the Standing Committee of the National People's Congress for second review on the 25th. The second draft review revised and improved various aspects such as personal bankruptcy rules, bankruptcy protection rules, restructuring rules, and cross-border bankruptcy rules. The current corporate bankruptcy law has been in effect since 2007. In September 2025, the 17th session of the Standing Committee of the 14th National People's Congress conducted an initial review of the revised draft of the Corporate Bankruptcy Law. After the meeting, the draft was publicly solicited for comments. In response to the first draft review, there are opinions that the methods and procedures for pre-restructuring negotiations should be improved, and the connection with the restructuring process should be made. To this end, a “Pre-restructuring Consultation” section was added to the second draft review, and it was clarified that pre-restructuring negotiations included two methods for the parties to reach a reorganization agreement and pre-vote on formulating a preliminary draft restructuring plan, as well as the legal consequences of entering the restructuring process by the two methods. At the same time, a provision was added to the draft. Where negotiations are carried out before restructuring in accordance with law, the parties may recommend an administrator to the people's court. Furthermore, the draft also improves cross-border bankruptcy rules, clarifying the extraterritorial effects of bankruptcy procedures, the jurisdiction of China's courts, and international mutual legal assistance mechanisms.

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