China is tightening controls on late payments to small and medium enterprises (SMEs) through a policy package covering payment oversight, accounts receivable vouchers, and financing support. The People’s Bank of China (PBOC), China’s central bank, said large enterprises that reduce accounts payable and shorten payment terms will receive financing conveniences in bond issuance and other areas, while companies with substantial payables and ample cash assets will face greater scrutiny. The policy is intended to discourage large companies from obtaining effective interest-free financing by delaying supplier payments and shifting borrowing costs onto SMEs. Electronic accounts receivable vouchers, which record future payment promises and can be transferred or financed, are also being brought under tighter rules. Nationwide voucher balances fell 20% to 2.4 trillion yuan, or about $358 billion, by the end of July 2026, while average maturities shortened by 92 days. The new rules cap voucher payment terms at six months, require stronger disclosures and data reporting, and restrict new issuance services for companies with overdue payments. Alongside the crackdown, the PBOC plans to expand SME financing through structural monetary tools, registration and disclosure systems, and targeted support for private and inclusive small and micro enterprises.