Paying suppliers within 60 days is mandatory! State Council issues ironclad order—failure to clear debts will result in severe consequences!|News Details|金兴防水集团-四川金兴防水工程有限责任公司

Paying suppliers within 60 days is mandatory! State Council issues ironclad order—failure to clear debts will result in severe consequences!

Publish Date: 2023-12-27 1Views

Paying suppliers within 60 days is mandatory! State Council issues ironclad order—failure to clear debts will result in severe consequences!

Recently, the State Council held its regular meeting chaired by the Premier, discussing measures to accelerate the advancement of industrial upgrading and deliberated on the adoption ofthe 'Special Action Plan for Clearing Up Corporate Account Arrears'.

The meeting emphasized that corporate account arrears must be taken seriously, with central and local governments leading by example. It called for genuine and substantial debt clearance efforts, strengthening policy support, unified coordination, and supervision and verification, striving to achieve full and timely clearance and building long-term mechanisms.

Professor Wan Yike from Beijing Normal University's 'One Belt, One Road' Institute stated: 'This meeting’s call for genuine debt clearance represents a highly positive and beneficial response to real challenges faced by private enterprises.' Wan explained:During the debt-clearing process, affected enterprises—especially private ones—often face various difficulties.Beyond simple non-payment, there are also disguised forms of 'debt evasion,' such as delaying payments under the guise of new project approvals or using other obscure methods to avoid debt obligations.

Urgent! Ironclad order from the State Council!

The meeting stressed that resolving corporate arrears issues is crucial for ensuring business operations, economic growth, and investment forecasts. This must be prioritized at all levels. Provincial governments must take overall responsibility for local debt-clearing efforts., promptly addressing government-related enterprise arrears, breaking the 'circular chain' of mutual debt among businesses.Central and local governments must lead by example. They must make genuine efforts to clear debts, strengthen policy support, ensure coordinated management, and enhance oversight and auditing, aiming for complete and timely clearance and establishing long-term mechanisms.

Wan stated directly: 'Before the pandemic, overdue payments had already caused significant hardship for many enterprises—especially private ones. With three years of pandemic disruptions, private firms now face even greater liquidity challenges.' He added:Private enterprises often find themselves weak and vulnerable, easily falling into a 'three-cornered deadlock',or enduring long supply chains.

Wan noted that some large state-owned enterprises alsoface situations like 'buy first, pay later,' where payment delays are common.Using various tactics to delay clearing debts, such as extending payment timelines, etc. 'Therefore, this meeting specifically emphasized genuine debt clearance—meaning actions must follow legal procedures and agreements, completing actual settlements within agreed timeframes.'

●Payment for goods must not exceed 60 days! Late payments incur 1.5x interest! Refusal to comply will lead to...

the 'Regulations on Timely Payment for Small and Medium-sized Enterprises'.

1. Government agencies, public institutions, and large enterprises purchasing goods, projects, or services from small and medium-sized enterprises (SMEs) must pay within 30 days; if otherwise agreed, the maximum period shall not exceed 60 days. Late payments must include interest. For contracts without specific agreement, interest must be paid at 1.5 times the benchmark rate of the People's Bank of China for similar loans.

2. No reliance on audit results as grounds for withholding payments or using them as settlement basis.

3. Government agencies, public institutions, and large enterprises must not abuse their dominant positions to impose unreasonable trading terms on SMEs. Penalties range from RMB 100,000 to 500,000 yuan.

●All courts nationwide respond: Establish enforcement hotline 110—ensure no one evades justice!

Implementing 'Enforcement 110' through smart management, establishing a 24-hour enforcement hotline center, enabling prompt investigation, detection, legal cooperation, and enforcement actions such as detaining fugitives, seizing vehicles, assisting in house arrests, and taking coercive measures against those involved in obstructing enforcement—enhancing enforcement power and social deterrence.

24-hour hotline receives reports and dispatches instructions immediately—central command responsible for urgent enforcement orders!

Work model:

Full-day duty rotation: Each team consists of 1 enforcement officer (+ judicial assistant) + 4 police officers, ready to respond instantly via dispatch from the command center. Guaranteeing response within 15–30 minutes after receiving an alert. We urge all courts nationwide to join this initiative, establish Enforcement 110, so that debtors have nowhere to hide, cannot escape, dare not flee, and do not want to run. No matter where you are, 24 hours await your call—chasing you relentlessly, my dear debtor! Let those who wish to become debtors—or already are—know: If you’re being pursued, you’ll be caught. If you’ve fled, you’ll be apprehended. If you’re hiding, you’ll be found. The law is strict—no mercy!

"Courts are acting seriously now! All illegal behaviors must be thoroughly cleaned up," said a legal expert. "Civil enforcement must be strong—not only protecting the rights of victims but also enhancing judicial authority and safeguarding social fairness and justice."

●2023: Total restrictions on 'enforced persons' using extreme measures!

I. Coercive enforcement measures under the 'Civil Enforcement Law':

1. Seizing bank deposits of the enforced person;

2. Freezing income of the enforced person;

3. Seizing shares and other assets of the enforced person;

4. Seizing vehicles and other movable property of the enforced person;

5. Seizing accounts receivable and other assets of the enforced person;

6. Seizing land, real estate, and other immovable property of the enforced person;

7. Recovering special items returned to the enforced person;

8. Paying double interest and compensation during delayed performance periods;

9. Imposing fines, detention, and other coercive measures;

10. Restricting departure from the country, etc.

II. Special coercive enforcement measures:

1. Enforcing sole residence;

2. Enforcing wages and income of the enforced person;

3. Enforcing pension payments for the enforced person;

4. Enforcing distribution of joint assets;

5. Enforcing financial assets for minors under age;

6. Prohibiting sale of mobile phone numbers of the enforced person;

III. Special conduct prohibitions:

1. Prohibiting travel abroad;

2. Prohibiting high-speed travel;

3. Prohibiting certain vehicle use activities;

4. Canceling driver’s license, restricting annual review;

IV. Comprehensive restriction measures:

1.Restricting luxury spending;

2.Restricting participation in specific industries or projects;

3.Restrictions on government support or subsidies;

4.Occupational qualification restrictions:

a) Restrictions on senior executives of state-owned enterprises;

b) Restrictions on legal representatives of public institutions;

c) Restrictions on senior managers of financial institutions;

d) Restrictions on responsible persons of social organizations;

e) Restrictions on civil servants recruited (appointed);

f) Special restrictions on party members or party cadres;

g) Restrictions on party representatives, major representatives, and standing committee members;

h) Restrictions on staff serving in public offices, etc.

5.Qualification access restrictions:

a) Including maritime certification restrictions;

b) Industry-specific restrictions (e.g., pharmaceuticals, food production);

c) Restrictions on real estate, construction company assets;

6.Honor and trust restrictions:

a) Restrictions on awards such as civilized city, town, unit, family, and moral role models;

b) Restrictions on lawyers and law firms;

c) Trustworthiness restrictions;

7.Special market transaction restrictions:

a) Restrictions on transactions involving immovable property, state-owned assets;

b) Restrictions on using state-owned forest land;

c) Restrictions on using grassland;

d) Restrictions on exploiting other state natural resources;

8.Prohibiting individuals from serving as legal representatives, directors, supervisors, or senior management of enterprises;

9.Restricting investors, fund managers, evaluators, and other personnel involved in fundraising activities; limiting payment tools such as digital wallets and online payment platforms;

V. Convenient and efficient enforcement actions:

1. Public disclosure of information about defaulters;

2. Rapid network search and enforcement investigation;

3. Asset checks every six months;

VI. Other restrictions:

1. Communication restrictions;

2. 'Red List' punitive measures;

3. Mobile device location tracking during enforcement;

4. Forced removal from labor contracts upon enforcement;

5. Pursued overseas if fleeing abroad;

6. APP notification with debtor ID alerts;

7. Public announcement of asset search leads;

8. Pop-up warnings in apps regarding debtors;

9. Enforcement risk insurance;

Final warning:Pursuit of liability: According to Article 313 of the PRC Civil Code, if a people's court ruling or decision has enforcement power but is refused, especially in serious cases, it constitutes refusal to enforce rulings or decisions and may result in pursuit of criminal liability..

Paying suppliers within 60 days is mandatory! State Council issues ironclad order—failure to clear debts will result in severe consequences!

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