Lianghui, the plenary sessions of the People’s Congress and Chinese People’s Political Consultative Conference, was held this past March to finalize the Chinese government’s 2016 goal of supply-side reform. In order to achieve this objective, Chinese premier Li Keqiang has firmly stated his intention to restructure so-called “zombie companies,” which will resolve the Chinese economy’s problem of oversupply and excessive debts. In general, corporate restructuring is a comprehensive concept that encompasses various types of corporate behavior. Depending on the executing agent, restructuring is classified two categories. The first is autonomous corporate restructuring in which the leadership, stockholders, and employees of a healthy or inefficient company plan and execute the improvement, and the second is heteronomous corporate restructuring in which creditors, government, or the law courts enforce the act to companies with impaired capital or low liquidity. In turn, heteronomous corporate restructuring is further classified into formal mechanism and informal mechanism: the former is executed in accordance with related laws ad under the supervision of law courts, and the latter is executed under an autonomous coordination between the debtor and the creditor. As clearly noted, the difference between the two mechanisms is whether the law courts are involved. In formal mechanism corporate restructuring is conducted in accordance with the bankruptcy procedure of each country, and informal melanism can have the creditor financial institution leading the restructuring, or the government taking the charge. The current study will research heteronomous corporate restructuring policies in China, beginning with reviewing the basic concepts, characteristics, and legal background of Chinese corporate restructuring policies (Chapter II), The study will further consider the corporate rehabilitation and conciliation procedures in accordance with Chinese bankruptcy laws (Chapter III). and with the understanding that important issues in Chinese corporate restructuring are reforming government-owned enterprises and treating insolvent obligations, the research will move on to study the government-led corporate restructuring in the form of government-owned enterprise reform and the current state of resolving insolvent obligation issues (Chapter IV), lastly, discuss future prospected and draw out its implications (Chapter V).