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Politics

Tech hub Shenzhen to allow China's first personal bankruptcy

City aims to ease debt burden on entrepreneurs in innovation push

In China, founders and managers of startups and other small businesses generally must provide personal or family assets as collateral when taking out bank loans. (Photo by Yusuke Hinata)

GUANGZHOU -- The city known as China's Silicon Valley looks to create the country's first legal framework for personal bankruptcy, hoping to ease the financial burden on entrepreneurs with failed businesses and help them get back on their feet.

Shenzhen's program could serve as a prototype for other Chinese cities and regions. The move is in line with the central government's push for technological innovation amid China's growing conflict with the U.S. in the fields of semiconductors and communication equipment.

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