China tells large companies to pay small suppliers within 60 days: what software and IT vendors selling to Chinese buyers should check

China tells large companies to pay small suppliers within 60 days: what software and IT vendors selling to Chinese buyers should check

2 October 2026 — China's State Council has issued a notice on strengthening work to tackle late payment to small and medium-sized enterprises. It was explained at a State Council policy briefing on 14 September 2026 by a vice-minister of industry and information technology, with the central bank, the state-assets regulator (SASAC), the market regulator (SAMR) and the securities regulator.

Not yet independently verified. This rests on the official transcript of the briefing published by MIIT, read in Chinese; the notice’s exact issue date is not stated there, and it sets no compliance date. We report it now, three weeks after the briefing, because it had not been covered here and changes contract terms. We will update this when it can be confirmed, and remove this note.

The main measures

The notice has ten measures in four areas. According to the briefing:

• Sector payment rules: industry regulators will set rules on four key elements: when the payment period starts, how payment is made, acceptance and inspection standards and deadlines, and the maximum payment term.
• A 60-day ceiling: large enterprises are guided to a maximum payment term of 60 days.
• A public pledge: leading companies are asked to publish a "60-day cash payment" commitment, counted from delivery of the goods, works or services; bank transfer counts as cash.
• Enforcement: large firms that deliberately stretch payment terms can be summoned jointly by regulators; abuse of a dominant position to impose long terms will be pursued under unfair-competition law.
• Disclosure: listed and large companies must disclose overdue payables more strictly, and rules on commercial bills and electronic receivable certificates will be tightened, since long-dated bills have been used to delay real payment.

Why it matters

Small suppliers in China, including many software developers, systems integrators and IT service firms, have long waited months to be paid by large state-owned and private buyers, often in commercial paper rather than cash. A 60-day norm counted from delivery, with acceptance deadlines defined, changes cash flow for vendors and gives them a reference point in negotiations.

What to do

• Vendors selling to large Chinese buyers: review payment clauses, acceptance procedures and the use of bills in current contracts; ask whether the buyer has published a 60-day pledge.
• Foreign firms with Chinese subsidiaries: check how the rules apply to your own payables if you are a large buyer.
• Finance teams: watch for sector rules from your industry regulator, which will set the detail.

Sources

• MIIT: transcript of the State Council policy briefing on tackling late payment to small and medium-sized enterprises — 14 September 2026