Barriers to reman in China
- December 28, 2016
Apart from sluggish consumer acceptance of reman as a concept in China, there a few policy barriers which may be putting a brake on the industry. In his report, Remanufacturing Mission to China, Yan Wang of the University of Brighton identified the following this year:
- End-of-life automotive components such as engines, steering parts, gearboxes and front and rear axles must be treated as waste and sent for recycling rather than being remanufactured
- Remanufactured auto components are not allowed to be used to service in-warranty vehicles, thus the market for remanufactured auto components is limited to the after-sale market. This has restricted the availability of cores although it is expected this law will be changed in the near future
- China currently prohibits the import and export of core and remanufactured products, which has undermined the development of the remanufacturing sector
Another issue has been the overproduction of similar components which are sold at very low prices In FTZs, imported cores can be remanufactured on condition that they must be exported and not sold in the Chinese domestic market.