Domestic trade in China now exceeds 150 trillion yuan annually, with over 180 million market entities, but long payment cycles and difficult receivables have long plagued textile companies. On May 8, 17 national industry associations jointly issued the 'Domestic Trade Transaction Guidelines (Trial)', offering the first standardized framework for domestic trade at the association level. For the textile industry—a typical sector with long chains and numerous intermediaries—this marks a systemic breakthrough.
Background
Guided by the Ministry of Commerce, the National Development and Reform Commission, the Ministry of Justice, and the Cyberspace Administration of China, the guidelines involve key textile associations such as the China National Textile and Apparel Council and the China Chamber of Commerce for Import and Export of Textiles. They cover the entire transaction process—from contract signing and delivery inspection to payment terms and business conduct—aiming to build high-standard transaction norms for enterprise reference.
In 2025, total retail sales of consumer goods exceeded 50 trillion yuan, and total circulation of production materials approached 100 trillion yuan. The massive scale of the domestic market demands that transaction rules shift from 'default negotiation' to 'standardized mutual trust'. In textiles, practices like 'goods first, payment later with 60-90 day terms' are common, often trapping small and medium enterprises in liquidity crises. The guidelines directly address this pain point.
Industry Impact
The most immediate impact on textile supply chains lies in payment term management. Previously, downstream brands or traders could extend payment cycles indefinitely under 'industry practice', while upstream yarn and fabric mills felt compelled to accept due to fear of losing orders. The guidelines clarify norms for payment terms, enabling companies to invoke industry standards in contracts and turn payment clauses into negotiable, clear terms.
From a regional industrial cluster perspective, clusters like Keqiao, Shengze, and Nantong—densely populated with SMEs—face acute payment difficulties. The guidelines will push these clusters to shift from oral agreements to written contracts with standardized clauses, reducing hidden costs from disputes. Additionally, the push for a unified national market requires breaking local protection and market segmentation. Textiles involve frequent cross-regional procurement and distribution, and uniform transaction norms will reduce contract interpretation conflicts caused by regional differences.
For buyers, short-term adjustments to internal payment processes may be needed, but long-term standardization will enhance supply chain transparency and reduce disruption risks from payment uncertainty. For factories relying on domestic orders, shorter payment terms mean faster cash flow, freeing capital for technology upgrades or capacity optimization.