China Association of Automobile Manufacturers promotes receivables payment in the automotive industry

The China Association of Automobile Manufacturers (CAAM) has issued an initiative aimed at promoting receivables payments in the automotive industry. The initiative covers key aspects such as order confirmation, delivery and acceptance, payment and settlement, and contract terms. Regarding payment and settlement, the initiative proposes that Party A's payment period be calculated from the date Party B delivers and passes Party A's acceptance, with a maximum period of 60 calendar days. If Party B provides continuous supply, centralized reconciliation can be conducted within a certain period of time, with the payment period commencing from the date both parties reconcile their accounts.