Overview
- Industry groups CABIA and CNESA issued the Initiative on Standardizing Accounts Payable Practices on Monday, June 29, 2026, calling for most supplier payments to be settled within 60 calendar days.
- Major producers including CATL, CALB, Sunwoda and BYD’s FinDreams publicly endorsed the plan within hours and China’s industry ministry said 11 battery makers have responded.
- The initiative spells out operational rules: count the payment clock from delivery or acceptance for SMEs, complete material acceptance within seven working days, prefer cash or bank transfers, and limit use of commercial acceptance bills.
- Beijing and industry backers say the rules target long payment cycles that have strained supplier cash flow and innovation capacity, a problem highlighted by BYD’s jump in bills payable in Q1.
- If widely followed, the measure could shift low-cost financing from stretched payables back to formal credit and contracts, but its impact will hinge on broader industry adoption and ongoing monitoring.