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Chinese ministry backs carmakers' payment commitment to suppliers

Xinhua | Updated: 2025-06-12 15:24
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A robot operates equipment on the assembly line of an automaker in Xi'an, Shaanxi province. YUAN JINGZHI/FOR CHINA DAILY

BEIJING -- China's Ministry of Industry and Information Technology (MIIT) on Thursday voiced support for a commitment made by multiple carmakers to cap the term of payment for their suppliers at 60 days, saying that the move will benefit industrial and supply chains.

The commitment was recently announced by 17 major Chinese automakers, including China FAW Group Co Ltd, Dongfeng Motor Corporation, Guangzhou Automobile Group Co Ltd and SERES Group. According to the MIIT, increasing competition in China's new energy vehicle (NEV) market is shifting pressure from automakers to other parts of the supply chain, resulting in extended supplier payment terms and cash flow difficulties.

The commitment is expected to boost cooperation between automakers and autoparts manufacturers, and greatly promote the healthy and sustainable development of China's automotive industry, the MIIT said.

The ministry noted that it will continue to maintain long-term, stable partnerships between carmakers and supply chain companies, and foster innovation and coordinated development among businesses of all sizes.

"We will keep working to strengthen the resilience and security of the industrial and supply chains, and make new contributions to the development of the global automotive industry," said a ministry official.

China's NEV industry is at a critical stage for high-quality development, the official said, urging all sectors to work together to create a "positive, civilized and orderly environment" for the industry's development.

China's NEV sales surged by 44 percent year-on-year to 5.61 million units in the first five months of 2025, accounting for 44 percent of total new vehicle sales in the country during the period, according to the latest data from the China Association of Automobile Manufacturers.

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