We don t pay much attention to protect the labor and employment right of laborers in the course of foreign investment and there are various defects in China s current law in protection of the labor and employment right,such as "Labor Law","Labor Contract Law","Employment Promotion Law" and administrative rules and regulations which relevant to foreign capital.

In order to protect the labor s basic human rights, under current China national conditions, there is a necessity that the discharge of labor claims takes precedence over the secured debts for maintaining the social stability and realizing fair justice.

Although the recently-enacted Enterprise Bankruptcy Law of China prescribes that labor claim shall possess the first position to be satisfied, labor claim always can’t be satisfied when total property of a bankrupt enterprise has been set guarantee for loan.