... And so does love of the law

Article Abstract:

China's enactment of a constitution and laws is expected to benefit it economically. The country's political leaders have finally realized the importance of governing in accordance with the rule of law. Ironically, the first fatalities of the adoption of the rule of law are the foreign creditors, who have been urging China to adopt the idea that law is foremost. The bankruptcy of Guangdong International Trust and Investment Corp is a case in point. The government has declared that it will no longer pay for the debts incurred by companies as it had in the past.

Government domestic functions, Politics NEC, Laws, regulations and rules, Law, Politics

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Watch out for the next `Gitic.'

Article Abstract:

Financial troubles are plaguing the Guangzhou International Trust and Investment Corp (Gzitic) which is being compared to the Guangdong International Trust and Investment Corp which was closed by China's central bank. Gzitic is the investment arm of the Guangzhou municipality which failed a payment on a $30 million syndicated loan led by SocGen Asia. Foreign creditors of Gzitic were advised to file for a bankruptcy petition instead of waiting for the entity to voluntarily settle their accounts.

Financial analysis, Investment Offices, Canton, China, Guangzhou International Trust and Investment Corp.

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...And so does love of the law

Article Abstract:

The initial result of Chinese adherence to the rule of law became evident with its decision not to get involved in the bankruptcy filing of the Guangdong International Trust and Investment Corp. The Chinese government, which had previously assumed the debts of such companies, has decided that such guarantees only encouraged foreigners to practice risky lending. China's move is seen as the maturing of its relationships with foreigners.

Organizational history, Economic policy, Bankruptcy, Guangdong International Trust and Investment Corp.

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