In a bold move to strengthen its business landscape, the Chinese mainland has unveiled revised regulations designed to guarantee timely payments to small and medium-sized enterprises (SMEs). Chinese Premier Li Qiang signed a decree from the State Council, marking a significant stride in supporting this vital sector.
Set to take effect on June 1, the updated measures build on the framework established in 2020 by clarifying work responsibilities, defining strict payment deadlines, and enhancing supervision. Notably, the new rules require large-scale enterprises to settle payments within 60 days of delivering goods, projects, or services.
This regulatory revamp comes as part of wider efforts to draft a private economy promotion law aimed at dismantling market barriers and cultivating a fairer, more dynamic business environment. By reinforcing the role of the private sector as a cornerstone of its socialist market economy, the Chinese mainland is paving the way for increased transparency and robust economic growth.
These changes are expected to boost confidence among entrepreneurs, investors, and global business enthusiasts alike, reinforcing fair trade practices and fostering innovation. As SMEs continue to drive economic vibrancy, the timely payment guarantee will play a crucial role in sustaining the momentum of new ventures and startups.
Reference(s):
China unveils new regulations to guarantee payments for SMEs
cgtn.com
