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EconomyChina Economy

China cracks down on export of ‘zero-mileage’ cars falsely declared to be used

Critics say exports of these vehicles, typically sold at lower prices but without guaranteed after-sales service, distort the market

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Cars for export are seen at a port in Nanjing in eastern China on November 12. Photo: AFP
Carol Yangin Beijing
China has moved to tighten regulations on used car exports, cracking down on new vehicles falsely declared to be second hand, in the latest step to ensure fair and orderly market activity.

Starting next year, exporters will have to prove after-sales service is available at the destination for vehicles that have been registered within 180 days, according to a notice released by the Ministry of Commerce on Friday. The availability of after-sales service must be confirmed by the car manufacturer.

The notice said local commerce authorities would also strengthen oversight of export licence issuance and compliance by exporters.

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The new rules seek to regulate competition in the auto sector and promote healthy development of used car exports, according to the notice.

The new regulation targets the export of so-called “zero-mileage” second-hand cars – new vehicles sold under the guise of used ones – a practice that carmakers have criticised for distorting the market.

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This practice emerged after China allowed used car exports in 2019 and has grown alongside the country’s expanding electric vehicle manufacturing sector. These “zero-mileage” vehicles have gained popularity in overseas markets, including Central Asia, Russia, the Middle East and Africa, said a car exporter based in the eastern city of Ningbo who declined to be named due to company policy.

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