Action on payments to private businesses

The central government has urged greater efforts to prevent delayed payments to private businesses, according to a statement released after a State Council executive meeting on Jan 30.

The meeting, chaired by Premier Li Keqiang, also called for the establishment of a long-term mechanism to prevent delayed payments to private businesses from government departments and State-owned enterprises.

Greater strides will be made in the area so that the salary payments for migrant workers can be delivered in full before the Spring Festival holiday.

Bonds newly issued by local authorities should be primarily used to solve back pay problems. Funds withheld by government departments and large SOEs for several years must be paid at least by half before the end of this year, the statement said.

The meeting also urged central SOEs to pay debts owed to private businesses before the end of this year, with other SOEs also urged to expedite the process.

More work will be done to strengthen spot checks, oversight and special audits, and the identities of local authorities and departments performing unsatisfactorily will be publicized, along with cases with severe social impacts.

The meeting also urged the accelerated establishment of a long-term mechanism to prevent back pay to private businesses. The authorities will be strictly forbidden from requiring advance payments from businesses in exchange for government contract projects.

Revisions to laws and regulations will also be made to prevent new back payments, the statement said.