MIIT: For automotive companies with large amounts of payable accounts, those who deliberately extend payment periods or receive numerous complaints, relevant departments will conduct interviews and urge them to make corrections.
The Ministry of Industry and Information Technology, in conjunction with the State Administration for Market Regulation, issued the “Notice on Promoting Standardized Payment of Supplier Accounts and Optimizing Account Period Management by Automobile Enterprises”. Automobile enterprises with large amounts of payable accounts, those who deliberately extend account periods, or those with frequent complaints will be subject to interviews and required to make corrections. The notice specifies that the account period begins from the date of acceptance; generally, the acceptance of minor parts should be completed within 3 working days. Contract payment deadlines must not exceed public commitments, and late payments will be subject to legal interest charges. Cash payments are encouraged, while the proportion of non-cash instruments is restricted. During the negotiation period, small and medium-sized enterprises may receive payment in advance at no less than 90% of the most recent contract price or 70% of the industry average. For small and medium-sized enterprises, automobile enterprises are encouraged to complete payment within 30 days, with a maximum limit of 60 days, and cash must be used when the payment method is not specified in the contract. The implementation of this policy will adopt a combination of “self-inspection reports from enterprises + third-party research and evaluation by public agencies + government supervision and verification”. Automobile enterprises are required to submit reports on account payment status by the end of July and January each year, and to entrust third parties to conduct systematic research and evaluation.