Core Viewpoint - The China Automobile Industry Association has issued a payment standard initiative aimed at regulating the payment practices between vehicle manufacturers and suppliers, emphasizing the importance of timely payments and fostering a collaborative ecosystem for high-quality development in the automotive industry [1][4]. Group 1: Initiative Details - The initiative outlines key aspects such as order confirmation, delivery and acceptance, payment and settlement, and contract duration, aiming to protect suppliers' interests and promote a win-win collaboration between vehicle manufacturers and component suppliers [1][2]. - It emphasizes adherence to the "Regulations on Payment for Small and Medium-sized Enterprises," discouraging large enterprises from exploiting their dominant position to harm suppliers [1][2]. Group 2: Payment and Settlement Guidelines - The initiative specifies that the payment period for manufacturers (Party A) should not exceed 60 calendar days from the date of delivery and acceptance of goods by suppliers (Party B) [2][4]. - For continuous supply from non-small and medium-sized enterprises, parties may negotiate a centralized reconciliation period, with payments calculated from the reconciliation date [2]. - It encourages cash or bank acceptance bills for payments, particularly advocating for small and medium-sized enterprises to receive payments entirely in cash or bank acceptance bills [2]. Group 3: Long-term Cooperation - The initiative advocates for establishing long-term and stable cooperative relationships, with each contract having a minimum validity period of one year [3][4]. Group 4: Industry Response and Implications - The Ministry of Industry and Information Technology supports the initiative, highlighting its role in clarifying requirements for delivery acceptance, payment periods, and fostering a stable supply chain [4][5]. - The shift towards electric vehicles is noted, with the need for a resilient supply chain and the importance of timely payments to alleviate operational pressures on suppliers, thereby promoting technological innovation and sustainable development in the industry [5]. - A commitment from 17 key vehicle manufacturers to limit payment periods to a maximum of 60 days is seen as a responsible step towards enhancing industry collaboration and sustainability [5].