MIIT Reports Progress on Shortening Auto Supplier Payment Cycles, Says Some Firms Still Extend Them

The Ministry of Industry and Information Technology (MIIT) on July 27 held a media briefing to report on progress in pushing key auto companies to shorten payment cycles for their suppliers.

The meeting noted that a few auto companies still have issues such as delayed start dates for payment periods and non-standard process management, effectively extending payment cycles. These companies need further supervision and improvement. To leverage media oversight and encourage effective improvements in supplier payment cycles, the MIIT General Office and the First Department of Equipment Industry invited 20 media journalists to serve as the first batch of 'supervisors for automotive industry payment-cycle issues.' Their role is to promptly identify leads and report on industry conditions, jointly promoting an efficient, collaborative, and mutually beneficial industrial ecosystem.

Going forward, MIIT will work with relevant departments to accelerate the compilation and release of guidelines for auto companies' payments to suppliers, strengthen supervision and rectification of companies that use disguised extensions, and step up law enforcement and regulatory action against suspected violations to safeguard the legitimate rights and interests of supply-chain enterprises, particularly small and medium-sized ones.