Core Viewpoint - The ongoing trade war between China and the United States has led to significant tariff increases, prompting companies to seek alternative markets and focus on cash flow management to survive the economic impact [2][3]. Group 1: Tariff Impact and Business Strategy - The U.S. has raised tariffs on Chinese goods to 245% and eliminated the tariff exemption for small packages under $800, forcing foreign trade companies to pivot towards domestic sales and alternative markets [2]. - Companies are facing cash flow challenges as they must pay tariffs upfront, leading to order cancellations from U.S. clients and resulting in unsold inventory [3][4]. - The Ministry of Industry and Information Technology has called for attention to the long payment terms that plague small and medium-sized enterprises (SMEs), emphasizing the need for faster cash flow to ensure business survival [3][20]. Group 2: Long Payment Terms as an Industry Issue - Long payment terms have become a widespread issue, with many suppliers and retailers operating under extended credit terms that hinder cash flow [4][6]. - The average accounts receivable collection period for large industrial enterprises increased to 64.1 days by the end of 2024, reflecting a worsening trend in payment delays [11]. - The retail sector often sees payment terms exceeding the legally stipulated 60 days, with some large retailers extending terms to several months [6][12]. Group 3: Financial Implications of Extended Payment Terms - Extended payment terms act as a form of "interest-free loan" for platforms, allowing them to leverage supplier funds for operational expansion [12][13]. - This practice creates a cycle where suppliers are pressured to finance their operations while waiting for payments, leading to increased reliance on costly loans [14][16]. - The financial strain on SMEs is exacerbated by the fact that they often cannot access traditional financing, while larger companies benefit from extended payment terms [14][20]. Group 4: Potential Solutions and Industry Evolution - There is a growing recognition among suppliers of the need to reduce reliance on extended payment terms, with some exploring innovative business models to enhance cash flow [19][20]. - Financial institutions are beginning to offer tools to help SMEs, such as policies that allow merchants to receive full payment upon consumer deposits, thereby shortening payment cycles [19]. - The industry is urged to shift from viewing payment terms as a tool for exploitation to a means of fostering mutual benefit, which could lead to healthier business relationships and improved cash flow for all parties involved [20][21].