China strengthens auto supply chain: auto giants unite on 60-day payment policy backed by MIIT
China’s Ministry of Industry and Information Technology (MIIT) has voiced strong support for a recent commitment by 17 major automakers, including BYD, Geely, Dongfeng, GAC, GWM, Seres and Xiaomi, to ensure payment to suppliers within 60 days. As reported yesterday, the move aims to foster a healthier, more sustainable automotive supply chain ecosystem.
According to an MIIT spokesperson, this industry-wide pledge significantly reinforces a collaborative “vehicle–component” development model. The official emphasised that a stable and timely payment structure is crucial to the integrity of the supply chain, especially as competitive pressure within the rapidly evolving new energy vehicle (NEV) sector intensifies. As delays in supplier payments and financial bottlenecks become more common, they pose risks to technological innovation and long-term growth, the spokesperson warned.
The ministry affirmed its commitment to ensuring vehicle manufacturers follow their pledges. MIIT will continue guiding automakers to establish long-term, stable relationships with upstream and downstream partners. These efforts are designed to enhance synergy among large, medium, and small enterprises, promote collaborative innovation, and improve the resilience and security of the industry’s supply chain.
“This initiative reflects the principle that when major players thrive, smaller firms can flourish too,” the spokesperson said, referencing the Chinese idiom “when the big river has water, the small streams are full.” MIIT believes such practices will benefit China’s domestic industry and contribute positively to the global automotive landscape.
The ministry also called for the industry to demonstrate leadership during this pivotal period of high-quality development in China’s NEV sector. In addition, it urged all stakeholders to maintain a fair and constructive environment by resisting online disinformation campaigns, including malicious PR and coordinated internet smear tactics, which threaten the industry’s reputation and orderly development.
With this pledge and MIIT’s backing, China’s automotive sector aims to reinforce trust, improve financial circulation, and create a more equitable environment for innovation throughout the value chain.
Source: IT-Home
