The Global Financial Crisis: Role of Law in China

In general, China's response to the global financial crisis was not very different from that of other countries: a stimulus package worth trillions of renminbi, aimed at encouraging domestic consumption. At the same time, China realized that containing the economic havoc would also require the adoption of new legal measures. Consequently, a series of rules and regulations was promulgated as part of the country's strategic response to the crisis. The objective of this article is to examine the role of law in promoting economic stability in China during the financial crisis. The discussion focuses on contract law and bankruptcy law. How well does the regulatory regime address the economic dislocation of the global downturn? To what extent has the administration of policy contributed to the revitalization of the Chinese economy?