Taiwan media concerned: Mainland state-owned enterprises have cleared up arrears of accounts, and Taiwan businessmen have frantically praised them

The picture shows the Foxconn assembly line. The image comes from the Internet

Huaxia Jingwei Network, January 6: The State-owned Assets Supervision and Administration Commission of the State Council of the mainland recently issued a notice requiring central enterprises to strengthen the control of accounts payable and bills payable, and to do a solid job of clearing up arrears to small and medium-sized enterprises. From now on (2022), in addition to the written agreement in the original contract, in principle, commercial acceptance drafts and supply chain debt certificates of more than 6 months will not be issued to prevent disguised extension of the payment time limit. In this regard, Taiwan media reported that it can alleviate the current cash flow pressure of small and medium-sized enterprises and Taiwan businessmen on the mainland, and Taiwan businessmen are "praising".

According to Taiwan's "Wang Pao" report, Cai Shiming, vice president of the Shanghai Taiwan Association, said that mainland small and medium-sized enterprises and Taiwan chambers of commerce have cash flow pressure, but it is not easy to borrow from financial institutions. Many small and medium-sized enterprises and Taiwan businessmen like to do business with units with state-owned assets, but if these state-owned units default on their accounts, it will cause downstream funding difficulties. "Now the SASAC can ask from the source, which is very good news for changing the entire supply chain."

According to the report, in practice, even if Taiwan businessmen do not directly do business with state-owned units, but because the bills themselves are negotiable, and the acceptance bills issued by relatively large state-owned enterprises basically have a certain value, enterprises are likely to receive such commercial acceptance bills from upstream and downstream, and when the flow of funds is tight, most of them will use certain discounts to transfer to others, that is, they must make profits.

Another Taiwan businessman pointed out that usually such acceptance bills of exchange will not be cross-yearly, and if they are issued at the beginning of the year, most of them will not be paid until July or August, and there are even longer account periods. "If the payment period is too long, it will cause the entire turnaround period to be extended." If the account period can be reasonably shortened, it can reduce a lot of intermediate costs!" (End)