The China Association of Automobile Manufacturers has issued a proposal on "Standardizing the Payment of Accounts Receivable between Automotive Manufacturers and Suppliers."

Today, journalists learned from the China Association of Automobile Manufacturers that in order to promote the implementation of the "Regulations on the Payment of Funds to Small and Medium-sized Enterprises" in the automotive industry, the association has made a regulatory proposal on "payment-related content in procurement contracts between vehicle manufacturers and supplier enterprises". It is noted that the overall principle of this proposal is: not to use the advantage of large enterprises to harm the interests of suppliers, to jointly build a collaborative and win-win development ecology for the "vehicle-components" industry, and to promote the high-quality development of the automotive industry together. In the order confirmation process, vehicle manufacturers and supplier enterprises should confirm the order date, parts name and specifications, quantity, delivery period, etc. in the purchase order confirmation. If changes or cancellations are needed for effective purchase orders, both parties should negotiate and agree. In terms of payment and settlement, vehicle manufacturers shall calculate the payment period from the date when suppliers deliver the goods and are accepted by the vehicle manufacturers, with a maximum period not exceeding 60 natural days. In terms of contract duration, it is advocated that both parties establish a long-term stable cooperative relationship, with each contract's validity period not less than one year. The relevant person in charge of the China Association of Automobile Manufacturers stated that this is another important measure following the halt of the release of the "Sales Weekly Ranking", the regulation of the promotion of "Driver Assistance", the governance of illegal acts of "low-price disorderly competition", and the "Special rectification of online chaos in the automobile industry". This series of measures will escort the long-term high-quality development of the automobile industry.