Legal analysis: Debts can be offset. Debt offset is a system in which when parties owe each other due debts, either party can offset its own type of debts against the debts of the other party, thereby terminating the rights and obligations of the contract. Set-off is divided into statutory set-off and agreed-upon set-off. Statutory offset is offset in accordance with the offset conditions stipulated by law.

Legal basis: Article 568 of the "People's Republic of China and Civil Code" If the parties owe each other debts, and the subject matter of the debts is of the same type and quality, any party may transfer its debts to It shall be offset against the counterparty's due debt; however, this shall not be offset based on the nature of the debt, agreement between the parties, or legal provisions. If a party claims set-off, it shall notify the other party. The notification takes effect when it reaches the other party. Offset may not be subject to conditions or time limits. Article 569 If the parties owe each other debts and the subject matter is of different types and qualities, they may be offset by consensus through negotiation.