China Starts to Export Used Cars

By Douglas A. McIntyre Updated Jan 6, 4:45AM EST · Published May 12, 7:51AM EDT

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China Starts to Export Used Cars — © Public Domain / Wikimedia Commons

China’s government says that there is a surplus of second-hand cars in the country. Its solution is to allow the export of some of these. What government controlled media does not make clear is where the cars will go.

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According to the People’s Daily:

China has launched the export of second-hand cars in 10 regions including Beijing, Tianjin and Shanghai, according to a statement released by the Ministry of Commerce, The Beijing News reported Tuesday.

Guidelines were released in late April, which required sound inspection and after-sales services for second-hand cars which would be exported.

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Data from China Automobile Dealers Association (CADA) showed that about 13.82 million used cars were traded in China last year, less than half the number of new vehicles sold. This figure means there is vast growth potential in the second-hand car market.

“The export of second-hand cars will not only unload excess inventory, but also stimulate consumption of new cars,” said Luo Lei, deputy secretary general of CADA.

Though it has a seemingly rosy future, the export market of second-hand cars still faces some problems including tax issues, different import policies, relatively weak competitiveness, and limited public recognition.

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.