Chinese Automakers Commit to Faster Supplier Payments Amid Regulatory Pressure

China''s automotive giants, including BYD, Xiaomi, and Chery, have pledged to settle supplier invoices within 60 days. This MOVE comes as regulators enforce stricter payment timelines and suppliers voice frustration over delayed compensation amid a brutal industry price war.

The new rules, effective June 1, require large corporations to clear most bills within two months. While automakers like Xpeng and FAW Group publicly support the initiative, supply chain partners remain skeptical—questioning whether manufacturers will exploit loopholes in the policy framework.

The agreement follows closed-door meetings with China''s Ministry of Industry and Information Technology, where officials demanded an end to cutthroat pricing tactics. This intervention highlights the government''s growing role in stabilizing an industry strained by financial pressures and competitive excess.