On September 15, the China Association of Automobile Manufacturers issued the "Initiative on Standardizing Account Payment Norms for Suppliers of Automobile Manufacturers". This initiative delineates standardized practices for account payments in procurement contracts between automobile manufacturers and their supplier enterprises. It zeroes in on pivotal stages such as order confirmation, delivery and acceptance, payment and settlement, as well as contract terms.

The initiative underscores the principles of equality, voluntariness, fairness, and integrity, aligning with the requirements of the "Regulations on Ensuring the Payment of Accounts to Small and Medium-sized Enterprises". It strictly prohibits large enterprises from leveraging their dominant market positions to encroach upon the interests of suppliers. The overarching goal is to cultivate a collaborative and mutually beneficial development ecosystem between automobile manufacturers and parts suppliers, thereby propelling the high-quality development of the automotive industry.

The initiative specifies that both contracting parties, namely Party A (the automobile manufacturer) and Party B (the supplier), should utilize purchase orders to confirm order dates and other pertinent details. Party B is obligated to deliver goods to Party A in strict accordance with the stipulations outlined in the purchase orders and delivery notices. Upon receipt of the goods, Party A is required to promptly conduct acceptance checks (ideally, within no more than 3 working days). The payment term shall commence from the date on which Party B delivers the goods and Party A completes acceptance, with a maximum duration of 60 calendar days. This period may be extended if a legal holiday coincides with the payment date. In cases where Party B is a non-small and medium-sized enterprise providing continuous supplies, both parties may, after mutual consultation, opt for centralized reconciliation within a specified timeframe. In such scenarios, the payment term shall commence from the reconciliation date.

Furthermore, the initiative advocates for the establishment of enduring and stable cooperative relationships between Party A and Party B. It mandates that each contract should have a validity period of no less than one year.