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 to ensure timely payments to small and medium-sized enterprises (SMEs).

The revision comes at a time when the country's working on a draft private economy promotion law to dismantle barriers and create a fairer and more dynamic business environment.

The law defines the private sector as a vital pillar of China's socialist market economy. 

Major revisions to the previous regulations issued in 2020 include detailing work responsibilities, clear requirements for payment deadlines, supervision improvement, 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 the settlement of complaints to ensure timely payments to SMEs while stepping up the punishment for illegal acts.

(With input from Xinhua)

(Cover: A worker assembles agricultural equipment at a private enterprise in Anlu, Hubei Province, March 12, 2024. /CFP)