automakers

Chinese automakers are adopting stricter payment terms, with firms like FAW and GAC committing to 60-day supplier payments. This mirrors a trend toward financial control, spurred by concerns about supply chain stability, and drew comparisons to the downfall of mobile maker Gionee, whose collapse due to financial mismanagement left suppliers unpaid, illustrating the risks of insufficient financial regulation in the sector.

The People’s Daily criticizes the ongoing price war in China’s EV market, highlighting concerns about its long-term impact. The article urges automakers to shift focus from price to value, emphasizing technological innovation and high-quality offerings. It observes a transition towards a value-driven market, driven by consumer demand for advanced features and personalized options, advocating for sustainable growth over short-term gains and inflated valuations.