Hua Er Jie Jian Wen·2025-06-11 00:47Core Viewpoint - Multiple automotive companies in China have committed to limiting supplier payment terms to no more than 60 days, responding to government efforts to address "involution" in the industry [1][12][13]. Group 1: Company Commitments - On the evening of October 10, companies including FAW, Dongfeng, GAC, and Seres announced their commitment to a 60-day payment term for suppliers to enhance cash flow efficiency and stabilize the supply chain [1]. - Shortly after, Geely announced a similar commitment to unify supplier payment terms to 60 days, emphasizing its role as a leading enterprise in promoting high-quality development in the automotive industry [1]. - Changan Automobile followed suit, stating that its subsidiaries would also adhere to the 60-day payment term, highlighting the importance of corporate social responsibility [3]. - BYD announced its commitment to the same payment term, aiming to drive high-quality development in the Chinese automotive industry through innovation and management optimization [6][7]. - Chery Group also joined the initiative, reinforcing the collective movement among automotive manufacturers [8]. Group 2: Regulatory Context - The commitments from these automotive companies align with the upcoming "Regulations on Payment of Funds to Small and Medium Enterprises," which will take effect on June 1, 2025, mandating a 60-day payment term and prohibiting non-cash payment methods [13]. - The Ministry of Industry and Information Technology has emphasized the need for comprehensive measures to address "involution" in the automotive sector, indicating a strong regulatory push to improve the business environment [15][16]. - The recent statements from various government departments reflect a concerted effort to combat unfair competition and promote healthy industry development, particularly in the context of the ongoing economic transition in China [16].