China's MIIT Tightens Automaker Payment Rules, Requiring Suppliers to Be Paid Within 60 Days
nashnova research
China's MIIT now requires automakers to pay suppliers within 60 days of parts arriving at the factory, closing a loophole that let carmakers stall by delaying sign-off — the latest move to stop price-war pain from rolling downhill to suppliers.
What loophole does the 60-day rule close?
The core mandate: suppliers must be paid within 60 days of parts arriving at the factory. The clock starts on arrival date, not sign-off date.
This means → the most common stalling tactic — refusing to sign for delivery so the payment timer never starts — is dead.
If a carmaker fails to complete sign-off within 3 days, the shipment is automatically deemed accepted and the payment clock starts anyway.
In plain terms = carmakers used to pretend the parts hadn't arrived. Now, 3 days of silence counts as a signature.
Why does the rule push cash over bills?
The regulation tells automakers to prioritize immediate bank transfers or wire payments over bank acceptance bills or commercial paper.
This means → bills and commercial paper are effectively IOUs — suppliers receive a piece of paper they cannot cash for months, so the real collection cycle far exceeds 60 days.
In plain terms = a rule that says "pay in 60 days" means little if the payment is a note that matures in six months. Prioritizing cash narrows that workaround too.
How long are automakers actually taking?
Bloomberg-compiled data shows Li Auto and Zhejiang Leapmotor had actual settlement cycles of 184 days in the most recent half-year — more than 3× the 60-day cap.
Analysts note that some carmakers' heavy reliance on supply-chain financing tools has partly masked their true debt levels.
This reflects a deeper problem: the 60-day target was already on the books in 2025, but enforcement had a massive gap. The new rule's value lies in the oversight mechanism it attaches.
Will semi-annual public scoring change behavior?
Automakers must file a payment-progress report every January and July. Regulators will assess the reports with third-party auditors, then publish the scores.
This means → carmakers with poor payment records face direct reputational pressure — suppliers, investors, and consumers can all see the results.
Deferred-payment arrangements (including bank-endorsed bills) are still allowed by mutual agreement, but the two sides must explicitly agree on who bears the discounting cost.
In plain terms = bills aren't banned outright, but the question of "who pays the interest to cash them early" must be settled on the table — suppliers can no longer be expected to absorb it silently.
What does this have to do with the price war?
The new rule is Beijing's latest move in a year-long campaign to contain the negative spillover of the auto-industry price war.
A prolonged price war erodes carmakers' margins. One common response: stretch payment terms and push the cash-flow squeeze onto suppliers.
This signals that regulators now see the price war's cost as extending well beyond sticker prices — it transmits down the supply chain, layer by layer.
Whether the public-scoring mechanism can actually change the payment behavior of top-tier automakers is the key thing to watch next.
市场有风险，内容仅供研究参考，不构成投资建议。