At a policy briefing held by the State Council Information Office, authorities outlined new measures to enhance governance over payment delays faced by small and medium-sized enterprises (SMEs). The Ministry of Industry and Information Technology (MIIT) highlighted that efforts are underway to alleviate the financial strain on large companies while ensuring they settle invoices from smaller suppliers promptly.

According to the directive on strengthening governance of payment delays, large enterprises are being asked to reduce the duration and scale of their accounts payable while boosting their cash income ratios. Acknowledging that these changes could place short-term financial pressure on large firms, the MIIT has introduced targeted support mechanisms in response.

As part of the new policy, financial regulators will guide commercial banks to assist large companies that actively comply with these requirements. This support includes facilitating the use of loans and bond issuances as a means to refinance existing payables, thereby alleviating liquidity constraints and enabling timely payments up and down the supply chain.