Two departments: Establish a supplier account payment management system for automobile companies and complete semi-annual and annual status reports by the end of July and January every year
The Zhitong Finance App learned that recently, the Ministry of Industry and Information Technology and the General Administration of Market Supervision jointly issued the “Notice on Promoting Automobile Companies to Standardize Supplier Account Payments and Optimize Account Period Management”. It was mentioned that automobile companies should establish and improve supplier account payment management systems, strengthen implementation tracking, supervise and optimize account period management, complete semi-annual and annual status reports by the end of July and January every year, and report them to the Ministry of Industry and Information Technology. The Ministry of Industry and Information Technology commissioned a third party agency to investigate and evaluate the payment situation of corporate accounts, and publicly publish the evaluation results. Third-party agencies organize industry experts to conduct in-depth research on automobile companies and upstream suppliers based on automobile companies' supplier payment reports.
By reviewing documents, checking data, inspecting sites, and employee interviews, etc., we can accurately grasp the company's account period, payment method and proportion, and the size of accounts payable. Specific implementation rules for research and evaluation shall be separately formulated by a third party agency and announced to the public. Research and evaluation work is carried out once a year, covering all key automobile companies (the specific list is published along with the implementation rules of the research and evaluation). Third-party agencies shall conduct research and evaluation objectively, impartially, and in a standardized manner; they shall not use this to obtain improper benefits and voluntarily accept supervision.
The supplier's billing period is calculated from the date the supplier delivers the goods, works, services and passes the inspection. For suppliers with continuous supply (2 or more deliveries per month), the partners can agree to determine a continuous supply cycle (in principle, not more than 1 month). After each supply cycle is over, the goods delivered within that cycle are centrally reconciled. The time period from the midpoint of the supply cycle until payment is completed shall not exceed the upper limit of the account period.
The original text is as follows:
Notice on Promoting Automobile Companies to Standardize Supplier Account Payments and Optimize Account Period Management
Ministry of Industry and Information Technology Unicom Letter [2026] No. 424
All provinces, autonomous regions, municipalities directly under the Central Government, the competent departments of industry, information technology, and market supervision of the Xinjiang Production and Construction Corps, and all relevant automobile enterprises:
In order to implement the work arrangements of the Party Central Committee and the State Council to further standardize the competitive order of the NEV industry, promote timely payment of supplier accounts by automobile companies, protect the legitimate rights and interests of suppliers, and create a good industrial ecology, according to relevant laws and regulations, the notice on matters relating to supplier account payment and account management for automobile companies (enterprises within the People's Republic of China that have obtained entry qualifications for road motor vehicle manufacturers in accordance with law and engaged in the R&D, design, manufacture and manufacture of complete vehicles) is as follows:
I. General Requirements
Guided by Xi Jinping's ideology of socialism with Chinese characteristics in the new era, thoroughly implement the spirit of the 20th National Congress and 20th Plenary Sessions of the Party, strictly implement the “Anti-Unfair Competition Law of the People's Republic of China”, “Anti-Monopoly Law of the People's Republic of China”, “Regulations on Safeguarding Payment for Small and Medium Enterprises” and related laws and regulations, adhere to the principles of responsible payers, industry standards, self-discipline, government supervision according to law, and collaborative social supervision, and promote automobile companies to standardize the payment of accounts purchased for goods, engineering, services, etc., and strive to establish fair, honest, trustworthy, mutually beneficial and win-win automobile-parts partnerships to promote automobiles High quality development of the industry.
II. Standardized payment guidelines
(1) The beginning of the account period is clear and unequivocal. The supplier's billing period is calculated from the date the supplier delivers the goods, works, services and passes the inspection. For suppliers with continuous supply (2 or more deliveries per month), the partners can agree to determine a continuous supply cycle (in principle, not more than 1 month). After each supply cycle is over, the goods delivered within that cycle are centrally reconciled. The time period from the midpoint of the supply cycle until payment is completed shall not exceed the upper limit of the account period.
(2) The inspection work standards are efficient. Automobile companies and suppliers shall agree on matters such as clear and reasonable inspection methods and deadlines in the contract, and strictly abide by them. After receiving goods, works, and services, automobile companies shall complete the inspection within a reasonable period of time. Among them, productive materials such as automobile parts shall be received in accordance with the agreed quantity within 1 working day of the agreed delivery time (based on logistics time), and inspection is completed within 3 working days after receipt of the goods. Failure to be inspected for more than 3 working days is considered to have passed the inspection; parts that really need to pass loading verification shall complete the vehicle's offline inspection within 5 working days after receiving the goods. If the inspection fails, the two parties carry out liability determination and compensation as agreed in the contract, and the corresponding material payments are not included in the accounts payable.
(3) Pay the account in full and on time. The automobile company and supplier agree on the payment period of the account in the contract and execute it in accordance with it; if the automobile company makes a supplier account period commitment, the payment period agreed in the contract shall not exceed the promised period. The payment time is based on the time the automobile company issues notes such as cash remittance or bank acceptance notes. If an automobile company fails to pay the account within the agreed accounting period, it shall pay overdue interest according to law. Overdue interest is calculated by referring to the bank's interest rate for the same period. If the supplier is an SME, overdue interest is implemented in accordance with section 17 of the “Regulations on Safeguarding Payment for Small and Medium Enterprises”.
(4) Payment methods are compliant and convenient. Payment methods shall comply with relevant national laws, regulations and regulatory requirements, and shall be determined through negotiations between the partners. Priority use of cash (bank transfers, wire transfers, etc.) or bank draft payments are encouraged, and suppliers must not be forced or disguised to accept non-cash payment methods such as commercial acceptance notes or supply chain notes. Where non-cash payment methods such as acceptance bills or supply chain notes are used, the proportion of use shall be reasonably controlled, and matters such as how to bear the discounted cost shall be clearly agreed upon in the contract.
(5) Advance payment during the negotiation period. Account payment arrangements during the negotiation period shall be agreed upon in the contract. In the case of continuous cooperation, a certain percentage (generally not less than 90%) can be paid in advance according to the price of the most recent contract in force between the two parties; in the case of discontinuous cooperation, advance payment of 70% (inclusive) of the industry average price or fixed development unit price can be made in advance, and more or less compensation can be refunded according to the final price.
(6) Priority guarantee for small and medium-sized enterprises. Automobile companies are encouraged to complete payment of the purchase price to the SME supplier within 30 days from the date the goods are accepted, within a maximum period of 60 days, and all payments are encouraged to be made in cash. Where the payment method is not specified in the contract, cash shall be used to pay SME accounts, and commercial money orders or electronic accounts receivable shall not be used in place of payment. Large automobile companies and their wholly-owned or holding subsidiaries, especially leading enterprises, are encouraged to pay accounts to small and medium-sized enterprises in cash within 60 days from the date of delivery of goods, projects, and services. Automobile companies should establish and improve risk control and compliance management systems, and urge subordinate enterprises and assembly suppliers to pay SME accounts in a timely manner. The SME status can be queried through the “SME Size Type Self-Test Mini Program” in the “Public Service Platform” module of the Ministry of Industry and Information Technology's official website. Where there is a dispute about the size type of small and medium-sized enterprise, it is possible to apply for certification to the general management department responsible for promoting small and medium-sized enterprises of the local people's government at or above the county level where the party claiming to be the SME party is located.
(7) Handling of exceptional circumstances. If it is true that an automobile company is unable to pay the account on time due to financial difficulties, it shall communicate with the supplier as soon as possible and defer payment as agreed in the contract (except where the supplier is a small or medium-sized enterprise). If the supplier fails to provide an invoice in accordance with the contract within the agreed time, the automobile company may defer payment according to the time the invoice is delayed.
(8) Others. Automobile companies are encouraged to establish long-term and stable cooperative relationships with suppliers. The contract should be valid for no less than one year each time. The content of the contract should be fair and reasonable, avoid setting unfair clauses, guarantee the balance of rights and interests of all parties, not ignore factors such as the bottom line of cost and hidden quality and safety risks, and not reduce supply prices on the grounds of shortening the billing period. Encourage automobile companies to implement systems such as formalized contracts and automatic payment of accounts at maturity to reduce human interference and improve working hours.
III. Implementation Initiatives
(1) Strengthen collaboration among all parties. The Ministry of Industry and Information Technology, together with relevant departments, has established supervision and inspection mechanisms to normalize and promote the optimization of account periods. Automobile companies are encouraged to voluntarily disclose information such as account period commencement and payment status. For automobile companies with large accounts payable on a large scale, deliberately lengthening account periods, or receiving many complaints from small and medium-sized enterprises, the Ministry of Industry and Information Technology, the General Administration of Market Supervision and other relevant departments will conduct joint interviews and supervise rectification, and those that violate laws and regulations will be severely punished. Relevant local departments cooperate to do a good job of supervising rectification, etc.
(2) Conduct research and evaluation. Automobile companies should establish and improve supplier account payment management systems, strengthen implementation tracking, supervise and optimize account period management, complete semi-annual and annual status reports by the end of July and the end of January every year, and report them to the Ministry of Industry and Information Technology. The Ministry of Industry and Information Technology commissioned a third party agency to investigate and evaluate the payment situation of corporate accounts, and publicly publish the evaluation results. Third-party agencies organize industry experts to conduct in-depth research on automobile companies and upstream suppliers based on automobile companies' supplier payment reports. By reviewing documents, checking data, inspecting sites, and employee interviews, etc., we can accurately grasp the company's account period, payment method and proportion, and the size of accounts payable. Specific implementation rules for research and evaluation shall be separately formulated by a third party agency and announced to the public. Research and evaluation work is carried out once a year, covering all key automobile companies (the specific list is published along with the implementation rules of the research and evaluation). Third-party agencies shall conduct research and evaluation objectively, impartially, and in a standardized manner; they shall not use this to obtain improper benefits and voluntarily accept supervision.
(3) Verification and handling of complaints. If there is any objection to the evaluation results announced by a third party agency, the third party agency shall carry out a review. If there is any objection to the investigation and evaluation work of a third party agency, the Ministry of Industry and Information Technology shall organize and carry out inspections, and the inspection situation shall be promptly disclosed to the public. If the inspection reveals acts of falsification or illegal profit, etc., the third party agency and those responsible will be dealt with seriously in accordance with the law and regulations.
General Office of the Ministry of Industry and Information Technology
General Office of the General Administration of Market Regulation
September 2, 2026
Interpretation of the “Notice on Promoting Automobile Companies to Standardize Supplier Account Payments and Optimize Account Period Management”
The Ministry of Industry and Information Technology and the General Administration of Market Regulation recently jointly issued the “Notice on Promoting Automobile Companies to Standardize Supplier Account Payments and Optimize Account Period Management” (hereinafter referred to as the “Notice”). In order to better understand and implement the “Notice”, relevant responsible comrades from the Equipment Industry Department I of the Ministry of Industry and Information Technology read it.
1. What is the background of the publication of the “Notice”?
The Party Central Committee and the State Council attach great importance to the work of regulating competition and order in the automobile industry. General Secretary Xi Jinping has issued important instructions and instructions many times, and the Executive Meeting of the State Council has conducted special research and arrangements. The Ministry of Industry and Information Technology, the National Development and Reform Commission, and the General Administration of Market Supervision have established exchange and consultation mechanisms for industry enterprises, integrated and comprehensive policies, and carried out thorough governance work in a systematic manner. Automobile companies are typical of irrational competition where payment periods for suppliers are too long, increasing the operating pressure on suppliers, especially small and medium-sized enterprises, and affecting the stability of the industrial chain supply chain and the smooth economic cycle. Strong measures must be taken to promote solutions. In June 2025, 17 key automobile companies publicly promised a “payment period of no more than 60 days” to reflect their responsibilities and responsibilities through practical actions. The China Association of Automobile Manufacturers issued the “Auto OEM Supplier Account Payment Standard Initiative” to actively promote the implementation of commitments. Over the past year, thanks to the joint efforts of industry companies, the average account period of key automobile companies has been effectively shortened, the proportion of cash exchange usage has increased dramatically, and the overall account period situation has improved markedly.
However, due to the large number of steps involved in payment of accounts, and large differences in the situation of automobile companies' subsidiaries and branches at various levels, there are still many problems in the process of optimizing account periods, and some suppliers are not very satisfied. For example, the starting time has different standards such as delivery and acceptance, centralized reconciliation, invoice receipt, and loading verification, etc., resulting in differences in the actual billing period; the enterprise's acceptance conditions are unclear and the time is long, and there are cases where the account period is extended in disguise. Compared with mature multinational automobile companies, there is still room for improvement in the accounting periods of key automobile companies in China.
On July 30, 2026, the Political Bureau of the CPC Central Committee held a meeting to deploy economic work for the second half of the year, calling for the creation of a fair and orderly market environment, continuing to comprehensively rectify “internal rolling” competition, and normalizing the resolution of corporate arrears. On August 21, the executive meeting of the State Council once again studied and deployed account payments for small and medium-sized enterprises. In order to implement the decisions and arrangements of the Party Central Committee and the State Council, continue to thoroughly rectify irrational competition in the automobile industry, further regulate automobile companies' supplier payment practices, shorten account periods, increase enforcement and punishment of enterprises suspected of intentionally lengthening account periods and receiving many complaints, and effectively protect the legitimate rights and interests of suppliers, the Ministry of Industry and Information Technology and the General Administration of Market Supervision have formulated a “Notice”. In accordance with the “Anti-Unfair Competition Law”, “Anti-Monopoly Law”, “Regulations on Safeguarding Payment for Small and Medium Enterprises” and related laws and regulations, the “Notice” further clarifies relevant requirements on the basis of thorough research and extensive listening to opinions, enhances the level of institutionalization and standardization of account payments, and promotes the construction of a “complete vehicle-parts” collaborative and win-win development ecosystem.
2. Compared with the China Association of Automobile Manufacturers's “Payment Standards Initiative”, the “Notice” puts forward some new requirements. What are the main considerations?
The “Notice” adheres to problem orientation, focuses on the main issues in the implementation of the “Payment Standardization Initiative”, and puts forward targeted requirements such as clear and clear starting of accounts, efficient and standardized acceptance work, full payment of accounts on time, convenient payment methods, advance payment during negotiation, and priority guarantees for small and medium-sized enterprises. It can be simply summarized in five aspects.
The first is to further standardize the starting time of the accounting period. The clear accounting period is calculated from the date the supplier delivers the goods, works, services and passes the inspection. Considering the reality of continuous supply, in order to avoid increasing the burden on suppliers and automobile companies, suppliers who supply 2 times or more per month are required to not exceed the upper limit of the billing period from the midpoint of the continuous supply cycle until payment is completed.
The second is to further standardize inspection practices. Automobile companies are required to complete the inspection within a reasonable period of time after receiving goods, works, and services. Among them, productive materials such as general parts should be completed within 3 working days, and parts that really require loading verification should be completed within 5 working days.
The third is to further regulate payment term requirements. An account payment period is required to be agreed upon in the contract, and the agreed period shall not exceed the period of the public commitment. If the agreed payment period is exceeded, interest is required to be paid in accordance with law. The payment time is generally based on the current exchange time, and “payment” is determined uniformly.
Fourth, further standardize payment methods. Encourage the use of cash payments, do not force or disguise suppliers to accept non-cash payment methods such as bank acceptance notes, commercial acceptance notes, supply chain notes, etc., and use a controlled ratio and agree on how to bear the discount cost.
The fifth is to further regulate payment requirements during the negotiation period. In order to avoid affecting the execution of the contract due to unnegotiated prices, account payment requirements during the negotiation period are clearly proposed. Continuous delivery can be paid at no less than 90% of the most recent contract price, discontinuous supply can be paid in advance at no less than 70% of the reference industry average price or development fixed-point unit price, and more or less is refunded according to the final price.
3. The Party Central Committee and the State Council attach great importance to the payment of accounts for small and medium-sized enterprises. What specific requirements does the “Notice” make in this regard?
The Party Central Committee and the State Council attach great importance to arrears on corporate accounts and efforts to control the repayment difficulties of small and medium-sized enterprises. Since 2020, China has formulated and implemented the “Regulations on Safeguarding Payment of Funds for Small and Medium Enterprises”, and has continuously revised and improved to vigorously protect the legitimate rights and interests of small and medium-sized enterprises. In August 2026, the Executive Meeting of the State Council further studied and deployed related work. According to the decisions and arrangements of the Party Central Committee and the State Council, the “Notice” has strengthened the payment requirements for small and medium-sized enterprises in a targeted manner.
First, in terms of payment terms, automobile companies are encouraged to complete payment payments to SME suppliers within 30 days, up to 60 days.
Second, in terms of payment of goods, small and medium-sized enterprises are encouraged to pay in cash. If the payment method is not specified in the contract, cash payments are not permitted, and payments such as commercial money orders or electronic accounts receivable documents are prohibited.
Third, in terms of coverage, large automobile companies and their wholly-owned or holding subsidiaries are encouraged to include goods, projects, and services in the scope of support and pay in cash within 60 days from the date of delivery.
4. In order to guarantee the effectiveness of the policy, what are the special considerations in implementing the “Notice”?
The purpose of the “Notice” is to promote the resolution of key and difficult issues in payment of accounts in the automobile industry. It is proposed to use a combination of “enterprise self-inspection report+third party agency research and evaluation publication+government supervision and verification” to promote implementation.
The first is to establish a mechanism for reporting the situation. Adhering to enterprises as the main body, automobile companies are required to submit semi-annual and annual account payment reports to the Ministry of Industry and Information Technology by the end of July and January every year to guide enterprises to follow up on the relevant situation on a regular basis and continue to promote implementation.
The second is to publicly publish the evaluation results. Through the form of government procurement services, third party agencies are commissioned to establish hierarchical evaluation methods, and systematic research and evaluation results are carried out once a year to objectively reflect automobile companies' account schedule optimization efforts, establish models, form demonstration-driven effects, and promote the shaping of a good industrial ecology.
The third is to give full play to the collaborative supervisory role of all parties. Third-party agencies improve procedures for publicizing and publishing research and evaluation results, and fully listen to opinions and accept questions. The Ministry of Industry and Information Technology relies on the “Online Problem (Suggestion) Response Window for Key Vehicle Companies Implementing Account Term Commitments” (https://sme-dj.miit.gov.cn/car），发挥汽车行业账期问题媒体监督员作用，受理账期落实、调研评估等问题与建议). Automobile companies with large payouts, deliberately lengthening account periods, or many complaints are carried out in collaboration with relevant departments to conduct interviews and supervise rectification. We hope that through these measures, we will fully stimulate the enthusiasm of all parties, forge a sense of industrial community, continuously improve the level of resilience and safety in the industrial chain supply chain, and accelerate the construction of a fair, just, honest, trustworthy, mutually beneficial and win-win industrial ecosystem.
Optimizing supplier payments is a system project involving industry development and people's livelihood. It requires the full cooperation of all parties in society, as well as continuous improvement of the institutional framework in practice. We sincerely hope that all parties concerned will fully support and cooperate, put forward more valuable opinions and suggestions, and work together to build a good industrial ecosystem to provide a solid guarantee for the high-quality development of the automobile industry.
This article was edited by the Ministry of Industry and Information Technology, Zhitong Finance Editor: Chen Siyu.