In response to mounting backlash over delayed payments and a deepening price war, major Chinese automakers including BYD, Chery, Geely, SAIC, BAIC, Xpeng, and Xiaomi have pledged to pay suppliers within 60 days, aligning with new government rules that came into effect on June 1.
The announcement follows intense criticism from the China Iron and Steel Association, which warned that steel suppliers are facing liquidity strains and shrinking profit margins. The group accused automakers of demanding more than 10% price cuts and delaying payments for months.
Government Push & Industry Response
China’s Ministry of Industry recently held a meeting with automakers, pressuring them to end the destructive price war and ease the burden on suppliers. New regulations now legally require large companies to settle most supplier payments within 60 days, although suppliers had expressed concerns about potential loopholes.
In their public statements:
However, none of the companies clearly stated what qualifies as the start of the 60-day clock or whether payments will be in cash.
Mounting Pressure from Supply Chain and Dealers
The auto industry’s cutthroat competition since early 2023 has led to extreme discounting, putting a squeeze on dealers and suppliers alike. Many dealers say they are being flooded with inventory, leading to cash flow problems and in some cases, store closures.
Great Wall Motor’s chairman, Wei Jianjun, has compared the situation to Evergrande's collapse, suggesting the auto industry is similarly heading toward a credit crunch.
Industry Experts Weigh In
Yang Hongze, chairman of Autolink, welcomed the pledges as a step toward healthier supply chain practices but stressed the need for transparency and enforcement:
“It is a pleasant but difficult change... but we still need clarity on whether we’ll get paid in cash or paper, and when the 60-day clock really starts.”
The situation remains fluid, with suppliers hoping these pledges signal a real shift toward fairer, more sustainable practices in China’s EV-dominated auto sector.
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U.S. President Donald Trump has announced plans to issue a new executive order aimed at addressing labor shortages in the agriculture and tourism sectors, which have been affected by his administration’s stricter immigration policies.
Liam Payne's final onscreen appearance will air next month as part of a Netflix series, following the approval of his family who reviewed the content and supported his involvement in the music competition.
Within the framework of the international event on energy efficiency held in Brussels, Azerbaijan’s Minister of Energy, Parviz Shahbazov, met with the Executive Director of the International Energy Agency (IEA), Fatih Birol.
US producer prices rose 2.6% annually in May, matching market expectations, with a modest 0.1% increase from April, the US Bureau of Labor Statistics reported.
Tensions between the U.S., Israel, and Iran are nearing a critical point as President Trump warns that an Israeli strike on Iran "could very well happen," while still expressing hopes for a peaceful resolution over Tehran’s nuclear ambitions.
Start your day informed with AnewZ Morning Brief: here are the top news stories for June 8th, covering the latest developments you need to know.
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Türkiye and Azerbaijan are deepening defense ties with two major joint military drills in Nakhchivan this June, aiming to strengthen strategic cooperation and regional readiness.
European foreign ministers agreed to increase pressure on Russia by imposing new sanctions targeting its energy and banking sectors amid ongoing conflict with Ukraine.
U.S. President Donald Trump has announced plans to issue a new executive order aimed at addressing labor shortages in the agriculture and tourism sectors, which have been affected by his administration’s stricter immigration policies.
Liam Payne's final onscreen appearance will air next month as part of a Netflix series, following the approval of his family who reviewed the content and supported his involvement in the music competition.
Within the framework of the international event on energy efficiency held in Brussels, Azerbaijan’s Minister of Energy, Parviz Shahbazov, met with the Executive Director of the International Energy Agency (IEA), Fatih Birol.
US producer prices rose 2.6% annually in May, matching market expectations, with a modest 0.1% increase from April, the US Bureau of Labor Statistics reported.
Tensions between the U.S., Israel, and Iran are nearing a critical point as President Trump warns that an Israeli strike on Iran "could very well happen," while still expressing hopes for a peaceful resolution over Tehran’s nuclear ambitions.
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