Ministry of Industry and Information Technology Launches Online Complaint Platform for Automotive Supply Chain

On July 9, the Ministry of Industry and Information Technology launched an online platform for addressing issues related to the 60-day payment commitment by key automotive companies aimed at supporting small and medium-sized enterprises (SMEs). Industry experts believe this initiative provides SMEs with a convenient channel for complaints and suggestions, helping automotive companies fulfill their payment commitments, safeguard the rights of SMEs, and promote the sustainable development of the industry. The supply chain is crucial for the automotive industry and is a key component of its transformation and upgrade. Recently, 17 major automotive companies including FAW, Dongfeng, GAC, and Seres publicly committed to a payment period not exceeding 60 days for suppliers. The implementation of this commitment has garnered significant public attention. The newly launched online platform will address four types of issues: failure by key companies to adhere to the 60-day payment commitment, payment deadlines exceeding 60 days as per procurement contracts, unreasonable start dates for payment deadlines, delays in issuing inspection or acceptance certificates, coercion of SMEs to accept non-cash payment methods such as commercial bills or electronic invoices, and other issues related to the enforcement of the "Regulations on Ensuring Payment to Small and Medium-sized Enterprises." Wang Tie, Director of the China Automotive Strategic and Policy Research Center, stated that these issues cover various aspects including contract design, payment process vulnerabilities, ambiguous acceptance rules, and misuse of payment tools, which will help accurately identify and solve the actual problems faced by SMEs. Fu Bingfeng, Executive Vice President and Secretary-General of the China Association of Automobile Manufacturers, emphasized the importance of cash flow for enterprises, describing it as the "blood" of a company. Timely payments are crucial for daily operations, project investments, and technological innovations. He noted that since the commitment was made, automotive companies have actively improved management processes and optimized payment methods, but standardizing supplier payment periods is a systemic project requiring collaboration from all parties. Wang Tie suggested establishing a dynamic monitoring mechanism to identify risks such as sluggish market growth, declining profitability, and worsening competition, enabling timely responses. A representative from the Ministry of Industry and Information Technology stated that they will further guide industry organizations in developing payment norms for the automotive sector, promote standard contract templates, and regulate the payment processes for suppliers to foster a collaborative and win-win development ecosystem in the automotive industry.