Process and technology

Watch and read about the webinar on opportunities in the remanufacturing industry in China

Friday, 1 July 2022

The remanufacturing community needs to stay connected and continue to share stories, expert views and advice. The Rematec team is dedicated to serve the industry and the remanufacturing community. In the run up to Rematec Amsterdam 2023 we will organise several free to attend online knowledge sessions. We kicked off with a webinar on Tuesday 28 June 'Opportunities in the remanufacturing industry in China'.

China is the largest automotive market worldwide. However, the Chinese remanufacturing industry is still very young. Recently the Chinese government has announced new policies for the remanufacturing industry. They decided to liberalise the bonded remanufacturing of key auto parts such as automobile engines. This creates great opportunities for the international remanufacturing industry to do business and share their knowledge and experience.

During this webinar, Mr. Xie Jianjun, Secretary General of CPRA, talked about what this new Chinese policy means for the remanufacturing industry. Followed by a well-known reman experts, Clemens Ortgies (YC Europe GmbH), Mike Yu (iRM eCommerce based in Shanghai), Julia Ma (Encory GmbH) and Huang Zhiyong (Guangzhou Huadu Worldwide Automatic Transmission Co., Ltd.). In an interactive panel discussion, they discussed the impact of this new policy on the domestic remanufacturing business. What are the most important changes? What are the new opportunities for the international companies to enter the largest automotive market in the world? Based upon their experience our panellists shared with you what the do’s and don’ts are of doing business in the Chinese remanufacturing industry, and give you advise on how to start.

Rajiv Ramchandra, founder of Re:CREATe (Recreate India Research Foundation) hosted this first Rematec webinar ‘Eyes on China’.

Watch the recording

Additional questions answered by Xie jianjun (Secretary General of CPRA)

According to the information gathered by CPRA (Automobile parts remanufacturing branch of China Automobile Industry Association), China's remanufacturing market is booming. Early strategic layout of the Chinese market will have good business opportunities. China's automotive remanufacturing industry has just developed. Local enterprises and international remanufacturing enterprises cooperate in the development of this Chinese market, especially in automotive electronics, new energy technology and other aspects of the prospects are promising.

It is cheerful to hear that the new tax/rate reservation policy offers positive opportunities for core suppliers (such as engine, gearbox and other auto parts) to export to China. But does this policy help core suppliers who only want to sell cores to China?
China's Ministry of Commerce recently issued policy to carry out the "bonded remanufacturing pilot work of automobile engines, transmissions and other products". The content to which is to allow cores (engine, gearbox, and other auto parts) outside of China to be remanufactured and processed in China’s bonded area. The remanufactured product cannot be sold in the territory of China but can only be sold to markets outside China. Currently, China's foreign trade policy cannot import waste automobile engines, gearboxes, and other products to China for remanufacturing raw materials. This bonded remanufacturing policy applies to both Chinese and foreign enterprises.

With the exception of transmissions and engines, how do you expect the policy and when this policy can be extended to other cores?
At present, according to our understanding, in addition to automobile engines and gearboxes, other auto parts can also apply for bonded remanufacturing business.

As is known, car manufacturers in China will also offer Reman Product. Is this development an option or will it be made mandatory in the long run?
The Chinese government clearly supports vehicle manufacturers to carry out remanufacturing business. At this stage we still advocating and encouraging measures. We predict that the future of vehicle companies to provide remanufactured products may become the government's mandatory requirements for the automotive industry. Contemporary in China's production of vehicles and large parts manufacturing groups, they are actively researching and planning remanufacturing product business. There will be a Reman Business Forum in the near future with both China government and OEs being involved, BMW, Audi, Land Rover and other multinational car companies have determined to participate in the Forum.

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