In mainland China, the most commonly used lending practice is to solicit guaranty. In Beijing's “Security Law” promulgated in 1995, the most noteworthy points are the emphasis on the guarantor's ability to repay the debt, requirements for the guarantor qualifications, the stipulation on the major elements of the guaranty contract, the enforcement of the joint suretyship, and the regulation that the short-term prescription of lawsuit should be in proportion to the duration of the guaranty period. In spite of the above efforts to protect creditors, mainland China is in short of legal principles, remedial measures, and relevant institutions for the implementation of the Security Law. Additionally, measures should also be taken further enhance monetary and commodity circulation so as to cope with the need of market economy.