The China Association of Automobile Manufacturers (CAAM) has issued the Guidelines for Payment to Suppliers by Automobile Manufacturers, which clarifies that both parties should confirm the order date through purchase orders and other matters, according to China's official media.

Suppliers should deliver goods to automakers as agreed in the purchase order and delivery notice, while automakers should complete the acceptance of goods promptly after receipt (in principle, no more than three working days).

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Regarding payment and settlement, the guidelines propose that the payment period for automakers should be calculated from the day suppliers deliver goods and pass automakers' acceptance, with a maximum of 60 calendar days (extended if the payment day falls on a public holiday).

If suppliers are non-small and medium-sized companies with continuous supply, they can negotiate with automakers to reconcile accounts within a certain period, with the payment period starting from the reconciliation day. Automakers should conduct account reconciliation at least once a month.

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