China has introduced stricter rules to stop “zero‑mileage” exports — brand‑new cars shipped abroad and falsely presented as used — a practice that can inflate sales figures and secure tax benefits. The measures cover vehicles exported within 180 days of registration and target falsified paperwork and cross‑border regulatory breaches. From Jan. 1, automakers must provide formal after‑sales guarantees and clear information on where customers can obtain service and parts. The Commerce Ministry did not name specific companies but said the issue has been reported across multiple provinces.
China Cracks Down on 'Zero‑Mileage' Car Exports — New Rules to Stop Fake Sales and Protect Buyers
China tightens rules on “zero‑mileage” vehicle exports
China has moved to clamp down on the export of so‑called “zero‑mileage” vehicles — brand‑new cars shipped abroad and labeled as used — after regulators found the practice can be used to inflate sales figures and obtain tax rebates and other benefits.
Scope of the new rules: The Commerce Ministry said the measures apply to cars exported within 180 days of their initial registration. They target falsified registration and export documents and other violations of Chinese law and rules in importing countries.
The ministry noted the practice has been reported across several provinces but did not name any specific automakers. Officials say the shipments can distort sales data by making excess domestic inventory appear as sold units abroad.
Overseas buyers of such vehicles have frequently faced difficulty obtaining after‑sales service and spare parts, which can harm the reputation of Chinese brands. In response, regulators and some automakers have pushed for clearer export oversight.
New obligations for automakers
From Jan. 1, automakers exporting vehicles will be required to provide formal guarantees for after‑sales service and to publish where customers can obtain repairs and replacement parts, according to the Commerce Ministry’s website. The rules are intended to protect overseas consumers and improve transparency in export reporting.
While the ministry did not single out manufacturers, the clampdown is meant to curb paperwork fraud and ensure that exported vehicles meet legal and consumer‑protection standards in destination markets.
Implications: The regulations could tighten scrutiny of vehicle exports, reduce incentives for falsifying sales, and encourage automakers to strengthen overseas service networks. They also signal Beijing’s willingness to police cross‑border trade practices that have broader economic and reputational consequences.
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