BUSINESS

China Carmakers Speed Supplier Payments Under ‘Anti-Involution’ Push

Published: Feb. 13, 2026 4:43 a.m. GMT+8

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Workers produce micro motors for automobile rearview mirrors and door locks at an electric motor company in Hai’an High-Tech Zone, Jiangsu province. Photo: IC Photo

China’s leading carmakers have cut their average payment period to suppliers to 54 days, meeting a government-backed target aimed at easing financial strain across the automotive supply chain.

The China Association of Automobile Manufacturers said Thursday that payment terms at major automakers have shortened by about 10 days on average compared with a year earlier. The improvement follows a June 2025 pledge by 17 top carmakers to limit payment periods to no more than 60 days, a commitment made under regulatory guidance to standardize industry practices.

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Explore the story in 30 seconds

China’s top carmakers cut average supplier payment periods to 54 days, achieving a government-backed target set for no more than 60 days.
Fifteen out of seventeen leading automakers now use safer cash or bank acceptance bills, moving away from risky payment methods, but some loopholes in timing remain.
These changes required tens of billions of yuan; full compliance across all manufacturers is not confirmed.

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Who’s Who

FAW Group: FAW Group, a leading Chinese automaker, has successfully achieved the government-backed target of reducing its average payment period to suppliers to 60 days as of August 2025. This initiative aims to ease financial strain across the automotive supply chain and is part of Beijing's "anti-involution" campaign to regulate industry practices and mitigate the effects of a protracted price war.

GAC Group: GAC Group is one of the major Chinese automakers that has successfully met the government-backed target of reducing payment periods to suppliers to 60 days or less. By August 2025, GAC Group, alongside FAW Group and Seres Auto, had achieved this goal, contributing to an industry-wide effort to ease financial strain on the automotive supply chain.

Seres Auto: Seres Auto, a Chinese carmaker, has successfully met the government-backed target of reducing its average payment period to suppliers to 60 days by August 2025. This initiative is part of an industry-wide effort to ease financial strain in the automotive supply chain and standardize payment practices among major automakers.

Chery Automobile Co. Ltd.: Chery Automobile Co. Ltd. (奇瑞汽车股份有限公司) has significantly reduced its payment cycle to suppliers, reporting a 47-day period. This places them well within the 60-day target set by the Chinese government and major automakers to alleviate financial strain within the automotive supply chain.

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What Happened When

June 2025：: Seventeen top Chinese carmakers pledged to limit payment periods to no more than 60 days under regulatory guidance.

As of August 2025：: FAW Group, GAC Group, and Seres Auto had achieved the 60-day payment period target.

February 12, 2026：: The China Association of Automobile Manufacturers reported that most major carmakers are now complying with the 60-day payment cap and that the average payment period has been reduced to 54 days.

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