The State Administration for Market Regulation said the Regulations on Ensuring Payment to SMEs require companies to include the number and amount of unpaid contracts with SMEs in their annual reports and publish the data on the National Enterprise Credit Information Publicity System. SAMR said the disclosure rule converts contract performance into publicly checkable credit information and does not directly mandate firms’ payment decisions. SAMR will, by law, place large enterprises that fail to

The State Administration for Market Regulation said the Regulations on Ensuring Payment to SMEs require companies to include the number and amount of unpaid contracts with SMEs in their annual reports and publish the data on the National Enterprise Credit Information Publicity System. SAMR said the disclosure rule converts contract performance into publicly checkable credit information and does not directly mandate firms’ payment decisions. SAMR will, by law, place large enterprises that fail to publish the required annual-report information on the list of enterprises with abnormal business operations and forward records to relevant departments to close the enforcement loop. SAMR will also step up annual-report disclosure enforcement and instruct local market regulators to carry out detailed checks to prevent concealment or underreporting.