China implements SME financial reforms and automotive payment improvements

In China, efforts to improve financial stability for small and medium-sized enterprises (SMEs) are progressing through both digital accounting reforms and stricter payment term regulations.

Yantai High-tech Zone has reported successful results from a national pilot program led by the Ministry of Finance and the People's Bank of China. The initiative uses standardized accounting data to build credit for small businesses, allowing them to secure loans without traditional collateral. As of late August, 15 enterprises in the zone have received credit through the platform, with six banks issuing a total of 28.65 million yuan in loans.

Separately, the Ministry of Industry and Information Technology reported improvements in the average payment cycles of major automotive companies. Following industry initiatives and regulations to protect SMEs, 17 key automakers committed to payment terms of no more than 60 days. While officials noted that actual payment periods are improving and the use of electronic vouchers is decreasing, they acknowledged a gap remains between current practices and the expectations of upstream suppliers, citing issues like unclear acceptance conditions and differing calculation start dates.