The State Council: Payment for project funds must not exceed 60 days! Interest will be charged for overdue payments, effective September 1!
The State Council's No. 728 Order, the "Regulations on Guaranteeing Payment to Small and Medium-sized Enterprises," came into effect on September 1, 2020. To ensure timely payment of overdue funds owed to SMEs, the Regulations stipulate that government agencies and public institutions shall pay within 30 days from the date of delivery of goods, completion of projects, or provision of services when procuring such items from SMEs. If the contract includes a different payment term, the maximum payment period shall not exceed 60 days. Additionally, if construction contractors are required to provide advance funding for government-invested projects, the relevant government agencies and public institutions will be held accountable. It is strictly prohibited to delay payments under the pretext of changes in legal representatives or key personnel, delays in internal payment procedures, or lack of explicit contractual agreements.
