China’s Ministry of Industry and Information Technology (MIIT) and the State Administration for Market Regulation (SAMR) have issued the first national industry-specific regulatory document targeting automakers’ payment terms. The rules cap supplier payment periods at 60 days, require the clock to start after delivery and acceptance, and set acceptance deadlines of three working days for general production materials and five working days for components requiring vehicle installation verification. Automakers may not force suppliers to accept commercial or bank acceptance drafts, supply chain notes or other non-cash instruments; where contracts do not specify payment methods, payments to small and medium-sized enterprises (SMEs) must be made in cash. Advance payments during price negotiations must reach at least 90% of the previous contract price for continuing cooperation and 70% of the industry average or designated unit price for non-continuous cooperation. The Notice encourages payment to SMEs within 30 days and requires settlement within 60 days under the specified conditions. A China Association of Automobile Manufacturers report released in February 2026 said 17 major automakers had reduced average supplier payment terms to about 54 days, while four reported averages below 50 days. MIIT nevertheless found that some companies were extending effective cycles to 70 or 90 days through delayed acceptance, manipulated start dates and commercial acceptance drafts. Automakers must submit semi-annual and annual reports, while third-party evaluations, public disclosures and regulatory interviews will support enforcement.