Again, under Chinese law, deposits that violate these regulations are void or illegal. The court permitted neither comments nor appeals. Restructuring was neither considered nor allowed. The bankruptcy and liquidation should occur according the mainland's 1986 bankruptcy law. The law does not contain any distinction between registered debt, unregistered debt, deposits or governmental guarantees.
Secured creditors present a problem.
The National Party Congress has yet to pass the constitutional amendment, which would allow the state to protect legal rights and interests in private property. Since a security interest is a legal interest in property, it still does not have official protection. The right may exist, but it may not be enforceable. But there is no rule of law in China, only power. The power of the central government to avoid paying the debt verses the power of the international lending community to extend money.