More than a dozen major Chinese automakers, including BYD, Geely and Xiaomi, have pledged to settle payments to their suppliers within 60 days — the latest development as Beijing vows to take strict measures to contain increasingly disorderly, vicious competition in the auto industry. The commitments align with new rules introduced in March and effective this month by Chinese authorities aiming to curb extended payment cycles for small and medium-sized enterprises. The announcements also come a week after China’s industry ministry demanded that automakers stop their price-cutting moves, Reuters reported. Payments typically take more than 150 days after suppliers deliver products to automakers such as BYD, Changan and Geely, compared with roughly 90 days from Tesla, according to figures compiled by Chinese brokerage Citic Securities. [Reuters, TechNode reporting]
Related
