["International Insolvency Review, Volume 34, Issue 3, Page 739-758, Winter 2025. ", "\nABSTRACT\nDue to the misalignment between enterprises and market demands, the need for bankruptcy reorganization among small and medium‐sized enterprises (SMEs) has been progressively rising. In the context of increasingly frequent cross‐border insolvency cases, the complexity of such situations has significantly intensified. In judicial practice, the exercise of creditors' rights, particularly those of secured creditors, is often restricted in an effort to salvage SMEs. However, there are ongoing concerns regarding the criteria and duration for suspending the exercise of security rights, as well as the excessive limitations imposed on secured creditors without sufficient safeguards. By striving for a balance between the restrictions placed on secured creditors and the protections afforded to SMEs during the bankruptcy reorganization, this paper seeks to establish a theoretical foundation for the suspension of security interests through the analysis of judicial cases in China and by referencing the bankruptcy laws of the United States, Japan, and other jurisdictions.\n"]