Chapter 5 considers whether China's new corporate reorganization law preserves going concern value, which is reflected on increased debt recoveries for creditors, and investigates how the two fundamental value redistribution principles, pari passu and absolute priority, are applied. The findings are considerably supportive, since the average debt recovery rate for unsecured creditors has been increased from less than fourtheen per cent in liquidations to twenty-eight per cent in reorganizations, which suggests reorganization significantly preserves going concern value. But greater challenges arise in the use of pari passu and absolute priority, since almost half of the surveyed cases relax pari passu in favour of unsecured creditors holding small amounts of claims, and absolute priority is routinely relaxed in the reorganization of public companies for social stability considerations. This chapter calls for more clarity on the application of these two principles when the law is amended.