China's Push for Fairer Automaker Payments

The Ministry of Industry and Information Technology in China has taken a significant step to address ongoing financial tensions within its automotive sector by launching an online complaint platform for supplier payments. This move comes amidst increasing criticism over lengthy payment terms that some automakers currently employ.

In a marked shift, major Chinese car manufacturers, including BYD, Chery, SAIC, and emerging player Xiaomi, recently pledged to streamline and hasten their payment processes, promising to settle accounts within 60 days. This decision is a response to growing discontent stemming from a brutal price war within the industry, which has placed considerable financial strain on suppliers.

The ministry has been explicit in its intent to foster a more stable and thriving automotive ecosystem. The new regulations and initiatives are part of an overarching strategy to bolster the industry's health and ensure its long-term sustainability, according to an official statement. This proactive approach by the ministry underscores China's commitment to mitigating industry conflicts and supporting business continuity.

(With inputs from agencies.)