At a recent State Council routine policy briefing, multiple government departments outlined their strategies to tackle the persistent issue of delayed payments to small and medium-sized enterprises (SMEs). During the session, Vice Minister of Industry and Information Technology Ke Jixin highlighted that some large corporations, while aggressively competing on price with their peers, are simultaneously extending payment terms for SMEs. He accused these companies of using their dominant market position to "play tricks and games" that unfairly prolong the payment cycle for smaller suppliers.

Mr. Ke noted that the State Council has recently approved and published a new circular aimed at intensifying efforts to resolve the difficulties SMEs face in recovering payments. The document introduces a comprehensive set of ten specific measures across four key areas. The first area focuses on refining industry-specific payment rules, which includes defining reasonable payment periods for different sectors and establishing clear guidelines for settlement and payment management, along with the "four key payment elements". The circular also advocates for a major enterprise payment initiative, specifically urging leading companies to take the lead in adhering to a "60-day cash payment commitment".

The second set of measures is designed to strengthen oversight of large enterprises' payment behavior. This involves conducting joint talks and corrective actions against firms that intentionally extend payment periods. Furthermore, strict anti-unfair competition enforcement will be applied to large companies that abuse their competitive advantages. The regulations also mandate enhanced information disclosure requirements for listed companies and large enterprises, encouraging state-owned enterprises (SOEs) to set a positive example by making timely payments.

In the third area, the focus shifts to regulating non-cash payment instruments. The new rules will standardize the management of electronic voucher businesses, capping their maximum payment period at six months. Supervisory control over electronic voucher service platforms will also be tightened to ensure their compliant and lawful operation.

Finally, the fourth area addresses improving the efficiency of capital transmission and strengthening financing support. The measures aim to smooth the flow of funds through the supply chain and encourage large enterprises to refinance their accounts payable, thereby enabling them to provide timely cash payments to SMEs both upstream and downstream.

Pei Renquan, a senior official from the State-owned Assets Supervision and Administration Commission (SASAC), emphasized that the commission has been intensifying its efforts to urge central SOEs to strictly regulate their payment practices. He reiterated that SOEs are expected to pay SMEs everything they owe, and to do so promptly. He announced that a nationwide promotion meeting for central enterprises will be convened this week to fully communicate the new policy, encouraging these firms to take the lead in three specific areas. First, they must ensure a "dynamic zero" rate of payment defaults, treating this as a strict, non-negotiable baseline. Second, they should champion the practice of "fewer vouchers, more cash payments," making the cash settlement with SMEs a firm and unyielding requirement. Third, they are expected to break away from unreasonable industry norms and practices. Relevant authorities will develop and refine payment, settlement, and information disclosure regulations across various sectors. SASAC will supervise and guide central enterprises to comply with these industry-specific rules, take the initial step in incorporating the "four key elements" into their contracts, and be the first to respond to and implement industry-wide timely payment initiatives, proactively disclosing information and subjecting themselves to public oversight.