China's new used car export policy

China's Ministry of Commerce said on Wednesday that it will strengthen supervision and guidance on used car exports, support the used car industry to expand nationwide, and maintain the orderly development of the industry.

According to CCTV News, He Yadong, a spokesman for the Ministry of Commerce, said at a regular press conference that following the release of the "Joint Decision on Expanding Used Car Export Business Nationwide" by the Ministry of Commerce and other four departments in February 2024, the Ministry of Commerce will continue to expand used car export business nationwide in conjunction with relevant departments. This marks the official end of the pilot project launched in 2019.

He pointed out that used car trade is an internationally accepted practice, and automobiles, as durable consumer goods, play a vital role in both international and domestic markets. According to official data, China exported 275,000 used cars in 2023, with a total export value of approximately US$6.88 billion (approximately RMB 492.8 billion). In 2024, China exported 436,000 "used cars", a year-on-year increase of 58.5%.

National standards and technical requirements

Under the expanded export framework, vehicles must meet national quality standards: used passenger cars must meet the WM/T 8-2022 standard, and used commercial vehicles and trailers must meet the WM/T 9-2022 standard. Each vehicle needs to be inspected by a certified third-party agency, and the exporter must submit an inspection report.

Exporters must also comply with the import regulations of the destination country, including issuing a declaration of conformity when necessary.

Regulators and industry stakeholders are reviewing transparency challenges in the domestic used car market, especially the growing number of "zero-kilometer used cars" - as we reported in early June, these vehicles are registered as sold but have little or no mileage.

This classification allows the vehicle to be resold as is, often at a discount, while technically avoiding new car inventory statistics. Analysts have linked this practice to persistent overcapacity and high inventory levels.

Some industry observers note that expanding regulated used-car exports could offer a way out of the overstock problem, though enforcement and compliance remain key factors.

Export policies could also help increase transparency and restore trust in car resale practices by requiring technical inspections and encouraging verification of service records.