The main problem of the bankruptcy law in China lies in the inadequate attention given to the central position of the bankruptcy law in the market economy and legal system, and the prevalence of instrumentalism. The reform of the bankruptcy law needs to be oriented to the market economy and guided by legal commercial concepts. The aim of the reform is to establish a bankruptcy law oriented to the market, which follows the internal requirements of the market economy and guided by the market. The new bankruptcy system will focus on the bankruptcy reorganization through a combination of assistance and selective sifting-out. The new system will include the following contents: expand the application scope of bankruptcy law, distinguish among different types of bankruptcy accountants in order to design appropriate bankruptcy laws separately, improve procedural prerequisites for bankruptcy, and introduce simplified reorganization systems. At the same time, a professional bankruptcy trial system is needed to ensure effective bankruptcy trials in terms of organization, techniques and procedures. And it is suggested that the government establish a specialized bankruptcy management agency to support bankruptcy trials.