China urges automakers to pay SMEs within 60 days

This signals a regulatory push to rebalance leverage in the auto supply chain, where large OEMs have historically used their market power to stretch payment terms. If enforced, it could improve cash flow predictability for smaller parts makers and reduce their working capital strain, potentially making the supply base more resilient. The key question is whether this remains a notice or translates into binding enforcement, and how automakers adjust procurement and inventory practices to comply without passing on costs.