On Friday, 1,080 used automotive transmission control modules arrived at the Chongqing Lianglu Guoyuan Port Comprehensive Bonded Zone, marking the official landing of China's first bonded remanufacturing business.
"This bonded remanufacturing business helps us connect the international supply chain and industrial chain, achieving efficient procurement of raw materials and global layout of remanufactured products, effectively reducing operating costs and enhancing the international competitiveness of our products," said Ruan Xijun, director of Chongqing Yuxiang Intelligent Technology, which imported the modules.
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The company is estimated to remanufacture approximately 250,000 automotive transmissions, engines and their components under bond annually, achieving a trade volume of nearly 1 billion yuan ($138.2 million).
According to Chongqing Customs, bonded remanufacturing is different from regular manufacturing. It uses special customs zones to recycle international products as raw materials. These materials are then turned into high-quality products through advanced methods. The new products are as good as or better than the original ones and are sold abroad. This method supports recycling and environmentally friendly practices.
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Chongqing, a major industrial hub in Southwest China, has excelled in auto production, NEV production growth and high-end model sales. In 2024, the municipality's auto production reached 2.54 million units. Its NEV output was 953,200 units, a year-on-year increase of 90.5 percent, significantly outpacing the national growth rate by nearly 60 percentage points, according to the Chongqing Economic and Information Technology Commission.
Chongqing Customs discovered that some local automobile-related enterprises had achieved an internationally advanced level in automotive parts remanufacturing technology. While there is a strong demand for remanufactured products abroad, these enterprises face challenges in expanding their international operations due to a shortage of raw materials, resulting in bottlenecks in the industry's development, indicating that the growth has the potential to be even greater.
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To address this issue, Chongqing Customs collaborated with the city's commission of commerce and ecological environment bureau to formulate a comprehensive supervision plan, successfully promoting Chongqing Yuxiang Intelligent Technology to be approved as a bonded remanufacturing pilot.
