China opens online complaint portal to enforce automaker payment promises
In a statement on Wednesday, the ministry said it will accept complaints from suppliers if major automakers violate commitments to pay within 60 days — a pledge made by 17 Chinese car manufacturers last month. The new platform allows suppliers to report delays caused by unjustified postponements of product inspections or acceptance certificates, extended payment periods beyond 60 days, and instances where suppliers are pressured into accepting non-cash payments, such as commercial paper.
The reason behind the action?
The initiative comes in the wake of growing backlash from upstream industries, including steelmakers and parts manufacturers, as a cutthroat price war—sparked in early 2023—continues to strain cash flows across the auto sector.
While the Chinese government introduced new rules in March mandating most payments to be settled within 60 days, effective from June 1, suppliers have raised concerns about potential loopholes. These include ambiguities over the definition of the payment period's start date and whether payments must be in cash or can be made through commercial paper.
Commercial paper, widely used in the real estate sector, allows firms to defer cash payments by offering future-dated promises of payment. Though it helps preserve liquidity, it often places smaller suppliers under financial stress, especially when they are forced to sell the paper at a discount in secondary markets to meet cash flow needs.
By offering a formal grievance redressal mechanism, the MIIT aims to ensure that large carmakers comply with payment norms, providing critical relief to the smaller players that form the backbone of China's automotive supply chain.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
11 minutes ago
- Time of India
China vows to regulate 'irrational' competition in EV industry
China's cabinet on Wednesday pledged to regulate what it called "irrational" competition in the country's electric vehicle industry, vowing to strengthen cost investigation and price monitoring, according to state broadcaster CCTV. The cabinet meeting, presided by Chinese Premier Li Qiang, was held as a two-year price war in the world's largest auto market only intensifies. China will focus on promoting the high-quality development of the electric vehicle industry and implement comprehensive measures in both the short- and long-term to address the "phenomenon of irrational competition" in the sector, CCTV quoted the cabinet as saying, without giving further details. The cabinet will also urge the main automakers to fulfil commitments on supplier payment terms and promised to help them boost competitiveness through technological innovation and quality improvement. Industry regulators and executives have previously warned of excessive competition and called on automakers to halt the bruising price war which they say threatens the sector's health and sustainable development. Concerns about oversupply persist, with new vehicles being shipped overseas as "used" since 2019, according to a Reuters report in late June. Separately, the cabinet meeting discussed boosting domestic consumption, with policymakers vowing to systematically remove unreasonable restrictions that hinder household spending and optimise policies for a consumer goods trade-in program.
&w=3840&q=100)
Business Standard
an hour ago
- Business Standard
Nvidia CEO downplays role in lifting US ban on chip sales to China
The head of Nvidia downplayed his role in getting the US government to lift a ban on selling an advanced computer chip in China and said it will take time to ramp up production once orders for the AI-processor come in. CEO Jensen Huang, speaking Wednesday in the Chinese capital Beijing, was upbeat about the prospects for the H20 chip, which was designed to meet US restrictions on technology exports to China but nonetheless blocked in April. He met US President Donald Trump before his trip and his company announced this week it had received assurances that sales to China would be approved. I don't think I changed his mind, Huang told a cluster of journalists, many of whom asked for his autograph or to take selfies with him. A carefully organised press conference at a luxury hotel descended into a crowd scene when Huang arrived in his trademark leather jacket and started taking questions randomly in his characteristic casual style. Export controls and tariffs were something companies must adapt to in a world he said was reconfiguring itself. He described his role as informing governments in the US and elsewhere of the nature and unintended consequences of their policies. The decision to lift the ban on the H20 chip was entirely in the hands of the American and Chinese governments and whatever trade talks they had, he said. We can only influence them, inform them, do our best to provide them with facts, Huang said. And then beyond that is out of our control. Nvidia said in April that sales restrictions on its chip in China on national security grounds would cost the company $5.5 billion. The White House also blocked a chip from Advanced Micro Devices. Both companies say the Commerce Department is now moving forward with license applications to export them to China. Huang said his company would likely be able to recover some of its losses but it's unclear how much. That will depend on how many H20 orders are received and how quickly Nvidia can meet the demand. I think that H20 is going to be very successful here, he said, noting the chip's memory bandwidth makes it a good fit for the AI models being developed by Chinese companies such as DeepSeek and Alibaba. Huang also touted the release of a new RTX Pro graphics chip that he said would power the development of humanoid robots. He described robotic systems with teams of robots working alongside people as the next wave in AI. Because there's so much robotics innovation going on and so much smart factory work being done here and the supply chain is so vast, RTX Pro is perfect, he said.
News18
an hour ago
- News18
Brewing Wild: You Can Cuddle With A Lion Cub While Having Tea At This China Restaurant
Last Updated: A luxury restaurant in China, offers afternoon tea with lion cubs, sparking outrage and calls for stronger animal welfare regulations. A luxury restaurant in northern China's Shanxi province is offering afternoon tea with lion cubs- stirring widespread outrage online and renewed calls for stronger animal welfare regulations. The Wanhui restaurant in Taiyuan city allows customers to cuddle lion cubs as part of a four-course afternoon tea set priced at 1,078 yuan (about $150), according to a report by the state-run Shanghai Daily. Videos and images shared on Chinese social media platforms WeChat and Weibo show guests cradling the cubs like infants. Wanhui, which opened in June, features several animals as part of its attraction-driven dining experience, including llamas, turtles and deer. Its page on social media advertises the encounters as exclusive experiences for a limited number of guests and about 20 tickets are sold daily. The offering has drawn strong criticism online, with many users expressing concern for the well-being of the animals and questioning the legality of the service. Shanghai Daily reported that the service 'has raised serious concerns about legality and animal welfare" echoing sentiments across social media where commenters called the venture dangerous and exploitative. The controversy follows another animal welfare scandal last month involving a hotel in Chongqing which came under investigation after it was reported that the place offered a 'wake-up service" using red pandas, allowing the animals to climb into beds and interact with sleeping guests. Get breaking news, in-depth analysis, and expert perspectives on everything from geopolitics to diplomacy and global trends. Stay informed with the latest world news only on News18. Download the News18 App to stay updated! view comments Location : China First Published: July 16, 2025, 18:25 IST Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
