Gasgoo Munich- On September 7, 2026, the Ministry of Industry and Information Technology and the State Administration for Market Regulation have jointly issued a notice to further regulate supplier payments and optimize payment period management. An MIIT official stated that some automakers still suffer from inconsistent start standards and prolonged acceptance times, effectively stretching actual payment periods.In June 2025, 17 major automakers publicly pledged to cap payment terms at 60 days. The MIIT noted that while average terms at these firms have shortened over the past year and cash usage has risen significantly, many suppliers still feel the pinch. Compared with established multinational automakers, China's key players still have progress to make.Image Source: Ministry of Industry and Information TechnologyTo address this, the notice refines execution rules. Payment periods begin upon delivery and acceptance of goods, engineering, or services. General production materials like auto parts must be accepted within 3 working days of receipt; silence beyond that window counts as acceptance. For parts requiring vehicle verification, off-line inspection must be completed within 5 working days.Addressing potential delays during price negotiations, the notice stipulates that for continuous supply, payments should be made upfront at no less than 90% of the most recent effective contract price. For non-continuous cooperation, payments should be at least 70% of the industry average or the nomination price, with adjustments made once the final price is settled.Regarding payment methods, the notice encourages cash settlements and prohibits forcing suppliers to accept non-cash instruments like commercial acceptance bills or supply chain bills. For small and medium-sized suppliers, automakers are urged to pay within 30 days—or 60 days at the latest—and encouraged to use cash entirely.Regulatory scrutiny is intensifying. Automakers must report payment status regularly, while third-party institutions will conduct annual research and assessments, publishing results and covering all key players. Companies with large accounts payable, those intentionally dragging out terms, or those facing frequent complaints will face joint talks from the two departments and orders to rectify.From the "60-day pledge" to defining acceptance, negotiation, and payment methods, and finally to public assessments, the governance of payment terms in the auto industry is shifting from corporate self-discipline to a verifiable, supervisable, and routine mechanism.
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