The Ministry of Industry and Information Technology (MIIT) reported that major automotive companies have improved their payment cycles to suppliers. This initiative follows the implementation of the Regulations on Guaranteeing Payments for Small and Medium-sized Enterprises and a specific industry proposal.
Currently, 17 key automotive manufacturers have committed to a maximum payment period of 60 days. According to the ministry, the use of electronic payment vouchers has increased, and the overall duration of outstanding accounts has begun to decrease compared to previous periods.
Despite these improvements, the ministry notes a remaining gap between current payment practices and the expectations of small and medium-sized enterprises. Officials identified issues such as inconsistent start dates for payment cycles and unclear acceptance criteria, which can lead to de facto extensions of payment terms.
The government intends to continue monitoring these practices to ensure that large enterprises adhere to their commitments. The goal is to reduce operational pressure on suppliers and maintain the stability of the automotive supply chain through consistent oversight.
