The State-owned Assets Supervision and Administration Commission (SASAC) said a
recent notice on easing SME receivables requires central SOEs to set an example.
Central SOEs will actively raise funds to ensure timely payment of dues. Going
forward cash payments to SMEs will be treated as a hard constraint, while SOEs
should, based on their circumstances, maintain a reasonable cash-payment ratio
to large suppliers and push payments along the business chain. Use of payment
vouchers will be strictly controlled; no new vouchers with terms longer than six
months will be allowed. SASAC will also urge central SOEs to comply with sector
rules, explicitly include four key contract elements in contracts, and lead
industry timely-payment initiatives.
