When domestic trade turnover exceeds the 50 trillion yuan mark, the textile industry is still plagued by payment cycles longer than fabric rolls. On May 8, 17 national industry associations jointly released the 'Domestic Trade Transaction Guidelines (Trial)', which not only marks a policy breakthrough but directly addresses chronic issues like irregular contracts and delayed payments. The China National Textile and Apparel Council and the China Textile Commerce Association were core participants, meaning these rules will first take root in the textile supply chain.
A Timely Upgrade for Domestic Trade Rules
By 2025, China's total retail sales of consumer goods exceeded 50 trillion yuan, the total circulation of production materials approached 100 trillion yuan, and the number of business entities surpassed 180 million—these figures reflect the rapid expansion of domestic trade. However, lagging transaction rules have become hidden costs: payment cycles often stretch to 90 days or more, disputes over payments are frequent, and SMEs face tight cash flows. Industry data shows the average payment cycle in textile fabrics is 60-120 days, with some home textile companies waiting over six months for payment. The Guidelines standardize key links such as contracts, delivery inspection, and payment terms, essentially providing a much-needed standardization lesson for domestic trade.
Direct Beneficiaries in the Textile Chain
The textile industry is one of the most representative verticals in domestic trade. From chemical fiber raw materials to grey fabrics, from fabrics to garments, there are many intermediate links and diverse participants, with transactions relying heavily on personal trust rather than contracts. The Guidelines will directly benefit three types of enterprises: upstream chemical fiber and yarn suppliers, where shorter payment cycles improve capital turnover; small and medium-sized fabric traders, where standardized contracts reduce legal dispute costs; and home textile and apparel brands, where unified rules enable more transparent supply chain evaluation. Notably, the China Textile Import and Export Chamber of Commerce is also a signatory, suggesting the rules may align with foreign trade standards, reducing switching costs between domestic and international systems.
Implementation Challenges and Industry Expectations
The release of the rules is only the first step; practical obstacles remain. The textile industry has deep-rooted trading habits, and many SMEs lack legal capabilities, risking non-compliance. Moreover, payment cycles are essentially a capital chain game, and guidelines alone cannot force compression without supporting supply chain finance tools and credit evaluation systems. However, a positive signal is that 17 associations cover the entire chain from production to circulation, creating significant synergy. If the China National Textile and Apparel Council can first promote standard contract templates among member companies and jointly develop accounts receivable financing products with banks, the Guidelines will move from paper to practice.