Shanghai steps up oversight of delayed payment practices hurting suppliers
Task force set up to protect supply-chain vendors and stabilise manufacturing amid fierce price wars
Gu Jun, deputy secretary general of the municipal government and director of the city’s development and reform commission, told a press conference on Thursday that a task force had been set up to ensure money owed to vendors would be paid promptly.
“Supervision will be strengthened to avoid delayed payments,” he said. “We will guide state-owned businesses to properly handle their debt repayments as they fine-tune their supply-chain management.”
The remarks came after Shanghai published its latest action plan to build a world-class business environment.
Dubbed the “dragon head” of the Chinese economy, Shanghai is regarded as a gateway city for foreign businesses and capital entering China. Its efforts to monitor payment practices stem from a nationwide campaign to weed out malpractices that have hurt manufacturing industries from carmaking to property construction.
