China Starts New Bankruptcy Law

China has introduced a new bankruptcy law that gives creditors precedence over workers when it comes to claiming the assets of failed companies. Previously they existed in a legal limbo. Their assets could not be released and their debts could not be struck from their creditors' books. Now for the first time, the law allows private Chinese firms, that have failed, to collapse. The change is seen as another step in China's move to a capitalist economy. It also means that failed state enterprises can also now be officially liquidated for the first time. Up till now, they estimate there are about 30 million Chinese people listed on the employment rolls of public companies that are no longer in operation.