Exploring the Chinese Pathway for Corporate Environmental Debt Repayment- A Discussion on the Coordinated Revisions of the Company Law and Bankruptcy Law

The ecological environment is the material foundation upon which human survival depends. Because companies act as primary polluters and energy consumers, we must explore a pathway for repaying their environmental debts to protect the ecological environment and ensure human survival. From the perspective of China’s Company Law, it is advisable to categorize corporate environmental debt into two basic types based on whether the debt arises before or after company deregistration: actual debt and anticipated debt. Actual debt should be repaid primarily through the company’s assets; however, in specific circumstances, the responsibility of company executives should also be pursued. Anticipated debt should be secured through the liquidation process prior to company deregistration. Specifically, the U.S. reserve fund system could be adapted for use in China, and the deposit obligations of the liquidation committee should be clearly defined. Indeed, during the process of repaying environmental debts, companies may become insolvent and enter bankruptcy liquidation proceedings. Therefore, it is recommended that the *Bankruptcy Law* address the repayment priority of corporate environmental debt during bankruptcy liquidation, providing adaptive considerations.