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.
As Argentina’s unemployment hits a four-year high, the spotlight has turned to the libertarian administration of President Javier Milei, whose sweeping economic reforms are reshaping the country’s social and labour landscape.
US President Donald Trump said Friday that a major deal with Harvard University could be announced soon.
US President Donald Trump rejected the official assessment from his intelligence community that Iran is not currently building a nuclear weapon.
NATO needs to evolve to meet today’s changing world, Italy’s Defense Minister Guido Crosetto said Friday.
Pakistan has nominated U.S. President Donald Trump for the 2026 Nobel Peace Prize for his "diplomatic role and leadership" during the recent crisis with India.
As Argentina’s unemployment hits a four-year high, the spotlight has turned to the libertarian administration of President Javier Milei, whose sweeping economic reforms are reshaping the country’s social and labour landscape.
South Korea’s chief trade negotiator, Yeo Han-koo, will travel to the United States from June 22 to 27 for a new round of high-level discussions aimed at resolving escalating trade tensions, the Ministry of Trade, Industry and Energy announced on Saturday.
US President Donald Trump said Friday that a major deal with Harvard University could be announced soon.
US President Donald Trump rejected the official assessment from his intelligence community that Iran is not currently building a nuclear weapon.
NATO needs to evolve to meet today’s changing world, Italy’s Defense Minister Guido Crosetto said Friday.
Iranian missiles struck multiple locations across Israel and neighbouring regions early Friday morning, including a Microsoft office complex, according to emergency responders and local media reports.
Peace is no longer a dream. It is a discussion. On the streets of Baku and Yerevan, it is also a question, of trust, of foreign interests, and of who truly wants it.
A high-speed tram derailment in central Gothenburg, Sweden, has left at least eight people injured late on Thursday (19 June), after the vehicle slammed into a snack bar on Avenyn Avenue.
The 2025 G7 Leaders’ Summit was held June 15–17 in Kananaskis, Alberta, under Canada’s presidency. Prime Minister Mark Carney framed the meeting around priorities of protecting communities, energy and climate security, the digital transition, and future partnerships.
The USS Nimitz is heading to the Middle East amid tensions between Israel and Iran. The U.S. aircraft carrier has a decades-long history in the region, from the 1979 hostage crisis to modern deployments, often serving as a key asset during periods of rising friction with Iran.
U.S. Vice President J.D. Vance visited military personnel in Los Angeles on Friday following their deployment to the city earlier this month in response to protests triggered by federal immigration enforcement actions.
As Argentina’s unemployment hits a four-year high, the spotlight has turned to the libertarian administration of President Javier Milei, whose sweeping economic reforms are reshaping the country’s social and labour landscape.
South Korea’s chief trade negotiator, Yeo Han-koo, will travel to the United States from June 22 to 27 for a new round of high-level discussions aimed at resolving escalating trade tensions, the Ministry of Trade, Industry and Energy announced on Saturday.
US President Donald Trump said Friday that a major deal with Harvard University could be announced soon.
US President Donald Trump rejected the official assessment from his intelligence community that Iran is not currently building a nuclear weapon.
As Argentina’s unemployment hits a four-year high, the spotlight has turned to the libertarian administration of President Javier Milei, whose sweeping economic reforms are reshaping the country’s social and labour landscape.
South Korea’s chief trade negotiator, Yeo Han-koo, will travel to the United States from June 22 to 27 for a new round of high-level discussions aimed at resolving escalating trade tensions, the Ministry of Trade, Industry and Energy announced on Saturday.
US President Donald Trump said Friday that a major deal with Harvard University could be announced soon.
US President Donald Trump rejected the official assessment from his intelligence community that Iran is not currently building a nuclear weapon.
NATO needs to evolve to meet today’s changing world, Italy’s Defense Minister Guido Crosetto said Friday.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment