The National Development and Reform Commission recently released the "China Business Environment Development Report (2026)." The innovative corporate bankruptcy mechanism in Zhuzhou, Hunan Province was selected as a typical case for optimizing the business environment.

The report highlights major concerns such as breaking down market access barriers, comprehensively addressing excessive-internal competition, and standardizing enterprise-related administrative law enforcement, presenting a concentrated display of China's innovative measures in advancing business environment construction. It includes a section on local cases, introducing the successful practices of 31 provinces, autonomous regions, and municipalities in improving and upgrading the business environment according to local conditions.

Zhuzhou City's relevant practices and experience in innovating corporate bankruptcy mechanism have been included in the report. In recent years, by dynamically evaluating elements such as assets, technologies, and markets, Zhuzhou City has initially identified the restructuring value of enterprises and promoted pre-restructuring. It sets a pre-restructuring period of three to six months for in-depth identification and testing of restructuring feasibility, and proceeds to formal restructuring procedures when conditions are mature. Creditors are encouraged to continue investing, with reinvestment rights and interests fully protected in accordance with the law. An online bankruptcy investment and financing platform has been established to provide integrated services of legal consultation, project recommendations, and valuation inquiries. Proactive connections are made with upstream and downstream enterprises in the industrial chain, helping enterprises overcome difficulties through such approaches as additional orders, capital injection assistance, and cooperative operations. The city continues to pay attention to enterprise needs after the termination of restructuring procedures, providing differentiated and targeted services to help clear obstacles in fund payments, asset transfers, and project approvals.

By fully leveraging the functional role of bankruptcy restructuring, Zhuzhou has promoted the regeneration of valuable distressed enterprises. By the end of 2025, Zhuzhou City had successively helped 25 enterprises be revived, with a restructuring success rate of 85.2%, revitalizing assets worth nearly 60 billion yuan and driving employment for over 3,800 people.

Chinese source: hunan.gov.cn