From the night of June 10 to the morning of June 11, multiple automakers in China — including FAW Group, Dongfeng Motor, GAC Group, Seres Group, Xiaomi Auto, Great Wall Motor, Geely Auto, XPeng Motors, BYD, Leapmotor, Changan Auto, and Li Auto — issued intensive statements pledging to standardize supplier payment terms to within 60 days.
The automakers stated that this collective commitment aligns with the country’s directives and relevant ministries’ deployments to ensure stable industrial/supply chains and promote high-quality development in the auto sector. It also aims to support the healthy growth of SMEs through concrete actions, fostering a more robust and orderly industry ecosystem.
This coordinated response follows the formal implementation of the revised Regulations on Timely Payments to Small and Medium Enterprises on June 1. The regulations explicitly require large enterprises to settle payments for goods, projects, or services procured from SMEs within 60 days of delivery.
Industry analysts view this unified move as not only a swift policy response but also an indication that the sector is attempting to move beyond long-standing “cutthroat competition” practices.
Historically, amid pressures from capacity expansion and cost negotiations, some automakers transferred operational burdens to their supply chains by extending payment cycles.
The “60-day pledge,” while ostensibly standardizing payment periods, represents automakers’ proactive adjustment of supply chain collaboration models.
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