The General Office of the Ministry of Industry and Information Technology, in collaboration with the General Office of the State Administration for Market Regulation, has issued a notice to standardize and enhance the payment practices of automotive enterprises towards their suppliers. This initiative aims to refine account period management, with a strong emphasis on safeguarding the interests of small and medium-sized enterprises (SMEs).

The notice specifically urges automotive companies to settle payments with SME suppliers within 30 days of goods passing inspection, setting a maximum payment window of no more than 60 days. It strongly advocates for the exclusive use of cash payments in these transactions. For contracts lacking explicit payment terms, cash should be the default method for settling accounts with SMEs, eschewing alternatives like commercial bills or electronic accounts receivable certificates.

Furthermore, the notice encourages major automotive enterprises and their wholly-owned or majority-owned subsidiaries, particularly industry leaders, to ensure cash payments to SMEs are made within 60 days of delivering goods, completing projects, or providing services. This move underscores a commitment to fostering a fair and efficient business environment for SMEs within the automotive supply chain.