Is the contractor more secure with a priority right? A functional analysis of article 286 of PRC contract law

• Main Author: ZHANG, Wei
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2005
• Subjects: Contracts; Secured Transactions
• Online Access: https://ink.library.smu.edu.sg/sol_research/2317; https://ink.library.smu.edu.sg/context/sol_research/article/4269/viewcontent/286.pdf
• Institution: Singapore Management University

In recent years, China’s economic boom has drawn considerable attention all around the world. Real estate development is among the strongest pillars that support the fast growing GDP of this country. When fascinated by the shining residential buildings, office towers and public facilities sprouting across the country, however, we are also surprised at the mountains of the outstanding debts that Chinese contractors are not able to collect. Statistics shows that the aggregate amount of overdue payment to contractors has increased steadily during the past 15 years nationwide, with about $440 million in 1990, $2.4 billion in 1992, $3.7 billion in 1993 and $7.3 billion in 1995.1 As of 2004, that number climbed to a record $45 billion.