State Council issues notice capping large-enterprise payments to SMEs at 60 days
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What happened
The State Council released a new notice on September 11 requiring government procurement entities to pay SMEs in cash and banning the substitution of commercial bills or accounts receivable electronic vouchers for payment. It also states that large enterprises must pay SMEs within 60 days.
Why it matters
The notice changes payment rules for public procurement and business-to-business transactions involving SMEs, which can alter corporate cash-flow management, procurement practices, and financing demand in the near term. It also creates an immediate implementation and enforcement question for local governments, SOEs, and regulators.
On September 11, 2026, the State Council issued a notice aimed at reducing delayed payments owed to small and medium-sized enterprises. The document requires government procurement to use cash payments rather than commercial bills or electronic receivables vouchers, and sets a maximum payment term of 60 days for large enterprises paying SMEs. The move turns a long-standing policy problem into a fresh compliance and enforcement task for ministries, local governments, SOEs, and major private-sector buyers.
Watch for
Ministry of Industry and Information Technology release of implementation guidance or complaint channel updates for SME arrears by 2026-09-15 Ministry of Finance notice to central-budget units and government procurement platforms on cash-payment compliance by 2026-09-15 State-owned Assets Supervision and Administration Commission directive requiring central SOEs to disclose or rectify overdue SME payments by 2026-09-15 National Enterprise Credit Information Publicity System or provincial market-regulation bureaus publication of enforcement or penalty cases tied to overdue SME payments by 2026-09-15