Cross-border bankruptcy refers to the bankruptcy cases with foreign elements, including there are foreign debtor or creditor involved, or the assets of the debtor are located aboard. With the global expansion of trade and investment, the number of cross-border bankruptcy cases is also increasing accordingly. However, states often vary with each other in bankruptcy laws, such as jurisdiction, applicable laws, priority of creditors and so on. And most national bankruptcy laws are insufficient to provide a set of well-equipped guidelines to deal with the conflicts of laws in cross-border bankruptcy. This inadequacy has led to the embarrassment in rescue of financially troubled businesses, inefficiency and extra cost of bankruptcy proceedings, forum shopping, and transfer of assets to foreign countries, and international cooperation in cross-border bankruptcy matters is badly needed. For decades, scholars have been promoting international cooperation in bankruptcy matters and different theories have been developed respectively. Among them, Territorialism, Universalism, Cooperative Territorialism, and Modified Universalism are four major theories in describing the extraterritorial effect of a bankruptcy proceeding or a bankruptcy judgment. Meanwhile, international organizations like United Nations Commission on International Trade Law, regional unions like European Union, as well as a number of states including the US have all made their efforts to the promotion of international cooperation in cross-border bankruptcy matters. The People’s Republic of China also introduced the concept of cross-border bankruptcy in its Enterprise Bankruptcy Law. International cooperation in cross-border bankruptcy matters is more frequent and easier than ever before. This thesis will examine and compare the existing theories and modes of international cooperation in cross-border bankruptcy matters. It will introduce the current legislation and practical operation in China in cross-border bankruptcy matters, and recommend on the cooperation mode which China shall adopt.