China unveils new regulations to guarantee payments for SMEs

Chinese Premier Li Qiang has signed a decree of the State Council to unveil the revised edition of regulations aimed at ensuring timely payments to small and medium-sized enterprises (SMEs).

Major revisions to the previous regulations issued in 2020 include the detailing of work responsibilities, clear requirements for payment deadlines, improvement of supervision, and enhancement of punishments for illegal acts.

The new regulations, which will go into effect on June 1, detail the responsibilities of the relevant departments at the central and local levels to ensure timely payments to SMEs.

The regulations specifically require that large-scale enterprises pay SMEs within 60 days of the delivery of cargo, projects or services.

The new regulations also improve supervision and settling of complaints to ensure timely payments to SMEs, while stepping up punishment of illegal acts.