The State Council of China has issued a new directive aimed at resolving payment delays for small and medium-sized enterprises (SMEs). The policy introduces 10 specific measures across four key areas to ensure timely settlements and improve supply chain stability.
The directive mandates the establishment of industry-specific payment rules, focusing on four critical elements: payment start dates, payment methods, inspection standards, and maximum payment terms. Authorities are pushing for industry leaders to adopt a 60-day cash payment commitment.
Regulatory oversight will be tightened for large enterprises that intentionally extend payment cycles. Measures include joint interviews, stricter anti-unfair competition enforcement, and enhanced disclosure requirements for listed companies and state-owned enterprises.
The policy also regulates non-cash payment tools, specifically reducing the maximum payment term for electronic vouchers to 6 months. Furthermore, the government aims to improve capital flow by supporting large companies in financing their accounts payable to ensure faster cash transfers to SMEs.
