Since the evening of June 10, 17 major Chinese automakers—including FAW Group, Dongfeng Motor Corporation, Changan Automobile, Geely Auto Group, GAC Group, and Seres Group—have issued statements pledging to settle payments to suppliers within 60 days.
What are the risks associated with extended payment cycles to suppliers? How should we interpret the commitments made by these automakers? And what measures will be taken next to build a collaborative and mutually beneficial ecosystem between automakers and parts suppliers? A spokesperson from China’s Ministry of Industry and Information Technology (MIIT) addressed these questions in an interview with People’s Daily.
According to the official, the voluntary commitment by automakers to limit payment terms to within 60 days is a positive response to national policy and reflects both social responsibility and corporate accountability. This move is significant for fostering a collaborative and mutually beneficial development ecosystem between automakers and parts suppliers, and for promoting the healthy and sustainable development of the industry. “We highly commend this initiative,” the spokesperson said.
The official further noted that the automotive industry’s supply chain is its backbone and lifeline, and a crucial component in the industry’s transformation and upgrading. As this transformation accelerates and competition in the new energy vehicle (NEV) market intensifies, pressure is increasingly transmitted from vehicle manufacturers to other segments of the supply chain. This has led to extended payment terms and cash flow difficulties for some suppliers—conditions that are detrimental to technological innovation and the healthy, sustainable growth of the industry.
The MIIT supports automakers in fulfilling their commitments and will continue to guide them in building long-term, stable partnerships with supply chain enterprises. The ministry also encourages integrated innovation and coordinated development among large, medium, and small enterprises. By fostering a favorable environment in which “when the big river flows, the small rivers are full,” the goal is to enhance the resilience and security of the supply chain and contribute positively to the development of the global automotive industry.
The spokesperson concluded by noting that China’s NEV industry is now at a critical stage of high-quality development. “We hope enterprises will lead by example and strengthen self-discipline within the industry. We also call on all sectors of society to support the NEV industry’s high-quality development, to jointly reject online smear campaigns and malicious public relations activities, and to help build a positive, civil, and orderly development environment.”
Editor: LQQ
