On September 11, 2026, MIIT and the State Administration for Market Regulation issued a notice regulating payment cycles and accounts payable between automakers and suppliers. The document is the first national-level automotive supply chain payment management regulation.
The regulation aims to curb "involution-style" competition and build a win-win ecosystem between vehicle manufacturers and parts suppliers. It addresses long-standing complaints about delayed payments and excessive pressure on upstream suppliers.
Geely, Great Wall and other major automakers have responded positively by pledging to shorten payment terms and improve supplier relations. The move is expected to strengthen the overall competitiveness of China's automotive supply chain.
Analysts said the new rule signals a shift from pure price competition toward healthier, more sustainable industry development.
Source: MIIT / China National Radio
