Bei Jing Shang Bao·2025-09-15 15:03Core Viewpoint - The China Automobile Industry Association (CAAM) has released the "Supplier Payment Norms Initiative" to standardize payment practices between automobile manufacturers and suppliers, aiming to protect the rights of suppliers, especially small and medium-sized enterprises, and promote a healthier automotive industry ecosystem [3][9]. Group 1: Initiative Details - The initiative outlines norms for order confirmation, delivery and acceptance, payment and settlement, and contract duration between automobile manufacturers and suppliers [3]. - In the order confirmation section, it specifies that both parties must agree on order details and any changes must be mutually consented [3]. - For delivery and acceptance, manufacturers are required to complete acceptance within three working days and notify suppliers of any discrepancies [6]. Group 2: Payment Terms - The initiative states that payment terms should not exceed 60 calendar days from the date of delivery and acceptance [6][9]. - For continuous supply from non-small and medium-sized enterprises, manufacturers can negotiate concentrated billing periods [6]. - If pricing is not agreed upon, manufacturers should make an initial payment based on the most recent contract price, with adjustments made once a price is established [6]. Group 3: Industry Context - The automotive market has become increasingly competitive, leading to pressure on suppliers through lower procurement prices and extended payment periods, negatively impacting the supply chain [7]. - In the first four months of this year, China's automotive production and sales exceeded 10 million units, but industry profit margins have declined to 4.1% despite increased sales [7]. - The initiative is part of a broader effort to enhance cooperation between manufacturers and suppliers, with 17 major manufacturers committing to the 60-day payment term [9][10].