China SMEs to get paid faster by state companies

China’s government is getting serious about stopping late payments. It has come up with rules to get government departments and large state-owned companies to pay their bills to smaller companies on time.

The companies that refuse to comply will be put on a court-administered blacklist and face fines of RMB 100,000 to RMB 500,000.

RIABU’s Simon Littlewood and Mark Laudi talk about how China can no longer look the other way for the tardy payment history of SOEs as SMEs will struggle and go bust.