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August 19, 2020

China to introduce new vehicle recycling policies

The Chinese government is set to introduce new recycling regulations for the automotive industry in September, designed to create a new market worth up to CNY100bn (US$14.4bn) per year, according to local reports citing the Ministry of Commerce.

By bcusack

The Chinese government is set to introduce new recycling regulations for the automotive industry in September, designed to create a new market worth up to CNY100bn (US$14.4bn) per year, according to local reports citing the Ministry of Commerce.

The new policies are aimed at improving the country's recycling capabilities and ultimately develop a more sustainable automotive industry. In particular, the government is looking to improve the country's vehicle dismantling capabilities and create a healthy market for recycled automotive materials.

There were an estimated 260 million vehicles in China at the end of last year, of which 9.1 million were classed as "obsolete". But only 1.95 million vehicles were scrapped, equivalent to 0.7% of the total, meaning that the automotive scrappage and recycling sector has significant potential to grow.

The government plans to launch a qualification system for companies looking to engage in the dismantling and recycling of scrapped vehicles and those that do not have the relevant qualifications will be excluded from operating in this sector.

Recycling companies will be required to maintain detailed records of scrapped vehicles and major components, including the serial numbers of engines, gearboxes, axles and chassis', which are to be uploaded into a national database.

Only qualified companies will be allowed to recycle hazardous waste and related components, such as catalytic converters and electric/hybrid vehicle batteries.

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