State Council Announces Regulations on Ensuring Payments to SMEs

Chinese Premier Li Keqiang recently signed the State Council Decree No. 728, announcing Regulations on Ensuring Payments to Small and Medium-Sized Enterprises (SMEs) which will take effect on 1 September. Centred around protecting the legitimate rights and interests of SMEs, the regulations seek to boost the trustworthiness of public institutions and large enterprises and optimise the business environment. They attempt to establish a system of laws and regulations for preventing and resolving arrears in payments to SMEs, stressing the need for self-discipline on the part of market entities, government supervision in accordance with laws, and co-ordinated social supervision. Some of the main points of the Regulations are as follows:

• Standardise the conclusion of contracts and fund guarantees and strengthen governance of the source of payments

• Standardise payment behaviours to prevent arrears in payments

• Strengthen credit supervision and service guaranteesSource: State Council

Source: State Council ​​​​​​​