With the transformation and upgrading of industry in China, and progress in supply-side reforms, Chinese legislation concerning the scope of entities with liquidation obligations, and the liability bearable by parties with liquidation obligations, is showing a gradual trend towards broadening and severity, the hope being that this will drive the large number of zombie companies in operational difficulty out of the market. Additionally, there are numerous foreign-invested enterprises that have been unable to successfully achieve a transformation, and that are also hoping they can quickly complete liquidation and de-registration procedures and remit the remaining capital back to the investing country. However, in practice, there are many z…
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