观点方正

China’s courts centre stage as defaults shake $17tn bond market

Despite improvements, offshore investors with weaker bargaining power remain at a disadvantage

For decades, one of the last places anyone in China would want to find themselves is standing before a judge. Yet, when it comes to certain areas of commercial law, there are signs of modernisation.

The courts have long been synonymous with the Communist party’s most macabre tendencies: political purges, crackdowns on dissent and corruption and, more recently, hostage diplomacy.

The courts’ ruthlessness has been on display again this year. In January, they imposed the death penalty on Lai Xiaomin, the former head of one of China’s biggest asset management companies. Weeks later Lai was executed.

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