{"id":294859,"date":"2026-02-12T21:22:10","date_gmt":"2026-02-12T21:22:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/ie\/294859\/"},"modified":"2026-02-12T21:22:10","modified_gmt":"2026-02-12T21:22:10","slug":"chinas-carmakers-cut-supplier-payment-cycles-amid-beijings-price-war-crackdown","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ie\/294859\/","title":{"rendered":"China\u2019s carmakers cut supplier payment cycles amid Beijing\u2019s price war crackdown"},"content":{"rendered":"<p datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1c6uqr6 ec74h0k1\">Major Chinese carmakers have cut their lengthy supplier payment cycles \u2013 previously used to offset costs and stay competitive in the country\u2019s vast auto market \u2013 from nearly a year to less than 60 days, a government-backed industry consortium said, following heightened efforts from Beijing to police the cutthroat sector.<\/p>\n<p datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1c6uqr6 ec74h0k1\">The China Association of Automobile Manufacturers (CAAM) said in a statement on Thursday that the 17 assemblers it recently investigated took an average of 54 days to pay their supply-chain vendors since June, with four of them taking less than 50 days to settle the payments.<\/p>\n<p datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1c6uqr6 ec74h0k1\">The association, which includes as members nearly every Chinese carmaker, did not release the names of the companies, but added that it would keep monitoring the payment status to ensure healthy growth of the automotive sector.<\/p>\n<p><a target=\"_self\" class=\"e1yy41x40 ef9u0v01 css-1ankfgb ecgc78b0\" href=\"https:\/\/www.scmp.com\/business\/china-business\/article\/3313963\/under-beijings-thumb-byd-and-other-carmakers-pledge-speed-payments-suppliers?module=inline&amp;pgtype=article\" title=\"\" data-qa=\"BaseLink-renderAnchor-StyledAnchor\" rel=\"nofollow noopener\">The shorter payment cycle<\/a>, down from about 300 days in the previous three years, resulted from Chinese authorities\u2019 tighter oversight on price competition among the country\u2019s 100-odd car companies last year, analysts said.<\/p>\n<p datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1c6uqr6 ec74h0k1\">Previously, Chinese carmakers frequently extended payment cycles to keep funds in reserve, which allowed them to continue their investments into research and development, as well as offset industry-wide price drops as manufacturers sought to gain an edge on their rivals.<\/p>\n<p datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1c6uqr6 ec74h0k1\">While this provided them a source of hidden, interest-free debt, it led to cash flow problems for suppliers of components \u2013 from batteries for electric vehicles (EVs) to car seats.<\/p>\n<p datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1c6uqr6 ec74h0k1\">\u201cThe results showed government intervention worked, as the automotive groups feared they could face severe punishment if they failed to operate in compliance with the authorities\u2019 requirements,\u201d said Chen Jinzhu, CEO of consultancy Shanghai Mingliang Auto Service. \u201cWithout delayed payments to suppliers, they will not have sufficient cash on hand to sustain discount wars.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"Major Chinese carmakers have cut their lengthy supplier payment cycles \u2013 previously used to offset costs and stay&hellip;\n","protected":false},"author":2,"featured_media":294860,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[72,7628,140491,140490,61256,113,61,60,140489,61253,140488,1188],"class_list":["post-294859","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-byd","tag-car-component-suppliers","tag-cash-flow-problem","tag-chinese-carmakers","tag-economy","tag-ie","tag-ireland","tag-overcapacity-woes","tag-price-competition","tag-reduced-payment-cycle","tag-tesla"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/294859","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=294859"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/294859\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/294860"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=294859"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=294859"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=294859"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}