On October 18, Xinhua News Agency reported that the General Office of the Central Committee of the Communist Party of China and the General Office of the State Council recently issued an opinion on addressing the issue of overdue payments to enterprises. This document outlines a systematic approach to resolving the problem of delayed payments.
The opinion emphasizes the importance of guiding principles based on Xi Jinping’s Thought on Socialism with Chinese Characteristics for a New Era. It calls for a comprehensive implementation of the spirit from the 20th National Congress of the Communist Party and its subsequent sessions, reinforcing the dual commitment to protect both state-owned and private enterprises. It advocates for governance according to the law, enhanced regulatory oversight, inter-departmental cooperation, and a strong focus on local accountability. Furthermore, it aims to establish a legal framework and refine operational mechanisms to foster a top-notch business environment that is market-oriented, law-based, and internationally accessible, ultimately promoting the healthy development of various enterprises.
The opinion also outlines the need for a well-defined legal and judicial framework for the settlement of overdue payment disputes. It calls for stricter oversight of government investment projects and their funding, including regular checks on fund allocation and tracking payment disbursement. Additionally, it stipulates the need to improve the settlement system for construction payments and enhance oversight of government procurement payments.
Further measures include establishing protocols to prevent large enterprises from delaying payments to small and medium-sized enterprises (SMEs), bolstering law enforcement supervision, and urging state-owned enterprises to standardize their payment management processes. It also proposes improving the complaint management system for overdue payments to SMEs by creating a nationwide platform for recording such defaults and complaints.
The opinion stresses the necessity for robust organizational support and supervision, collaboration among various departments, and in-depth research into the causes of payment delays in key sectors and industries. It encourages a joint effort to tackle the issue of overdue payments while enhancing the mechanisms for punishing dishonesty and strengthening audit supervision.
Finally, it underscores that all regions and departments must recognize the critical importance of resolving overdue payments to protect enterprise rights, stabilize expectations, and bolster business confidence. They are encouraged to align their efforts with local conditions and responsibilities to effectively carry out these initiatives.
