Core Viewpoint - The article discusses the challenges and complexities surrounding payment terms in the Chinese automotive supply chain, highlighting the inadequacies of recent policies aimed at improving payment practices and the persistent issues faced by suppliers in receiving timely payments [4][19][55]. Group 1: Policy and Industry Response - The China Automotive Industry Association released the "Supplier Payment Norms Initiative" to address payment issues, but the response from the industry has been mixed, with many suppliers still unaware of their rights and the mechanisms available for complaints [4][5][19]. - A survey revealed that nearly half of the suppliers were unaware of the complaint platform established by the Ministry of Industry and Information Technology, and 88.3% of those aware chose not to file complaints despite facing issues [5][7]. Group 2: Payment Terms and Practices - Most domestic automakers fail to meet the mandated two-month payment term, with suppliers reporting average payment periods of around six months, and some extending up to 2.5 years [7][9]. - The survey indicated that 76.5% of suppliers believe that the implementation of the initiative will be difficult, with many expressing skepticism about the willingness of manufacturers to change their practices [18][19]. Group 3: Supplier Experiences - Suppliers reported that smaller companies often face worse payment terms compared to larger firms, with 80% of small suppliers indicating payment periods exceeding six months [12][15]. - The payment methods predominantly used by suppliers include bank acceptance bills and commercial acceptance bills, with cash payments being rare [11][17]. Group 4: Variability Among Different Types of Automakers - Overseas and joint venture automakers generally offer better payment terms compared to state-owned enterprises, with foreign companies averaging a payment cycle of 56 days, while domestic companies average 168 days [30][31]. - Some suppliers noted that while certain state-owned enterprises have improved their payment practices, many private companies remain problematic, with 52.9% of suppliers expressing dissatisfaction with their payment terms [32][33]. Group 5: Structural Issues in Payment Processes - The article highlights a complex payment structure where the actual payment cycle can exceed nine months due to delays in invoice processing and acceptance [20][23]. - Many suppliers reported that the lack of transparency in acceptance processes and arbitrary changes to acceptance standards contribute to prolonged payment cycles [23][25]. Group 6: Financial Instruments and Their Implications - The use of electronic debt certificates (X-chain) has become prevalent, allowing automakers to extend payment periods while suppliers face high costs to access their funds [44][50]. - The article emphasizes that while policies exist to protect suppliers, the enforcement and practical application of these policies remain weak, leading to continued exploitation of suppliers by larger automakers [28][55].