The initiative calls on enterprises to uphold the core principles of fairness, integrity, and mutual benefit, and establishes a number of firm self-discipline red lines to address common industry malpractices, covering the full spectrum of ordering, acceptance, settlement, and collaboration.
In terms of payment and settlement—the central focus—the document sets a maximum payment term of 60 calendar days for small and medium-sized suppliers, with the term starting from the date of delivery and qualified acceptance of goods. In addition, the initiative mandates a fixed monthly reconciliation mechanism. For procurement batches where final pricing has not yet been determined, companies are required to make advance payments of no less than 80% of the estimated amount, significantly easing the working capital burden on suppliers.
Since the initiative was launched, a host of leading companies across the sector have publicly pledged to fully comply. These include major players in power batteries and energy storage integration, with key cell manufacturers such as CATL, Fdbatt, CALB, EVE Energy, and Sunwoda.
CATL stated that a healthy, stable industrial chain is essential to the sector’s high-quality growth. Upholding a fair and transparent market and protecting suppliers’ legitimate rights are corporate responsibilities it takes seriously. The company will align its practices with the initiative’s principles and work with supply chain partners to build a trustworthy, compliant ecosystem rooted in mutual benefit. Its goal is to support the sustainable, high-quality development of China’s power and stationary storage battery industry through tangible action.
