China released draft rules establishing nationwide requirements for automotive-parts remanufacturing, covering sourcing of used components, product quality, traceability and market oversight. The government aims to standardize the industry that remanufactures used-vehicle parts, setting rules for collection, processing, labeling and sale.
Under the proposed rules, remanufacturers could acquire engines, steering systems, transmissions, front and rear axles and frames from qualified vehicle dismantlers, provided the recovered parts match the remade components. The draft would prohibit remanufacturing of exhaust after-treatment devices and require remade emissions-control components to comply with national standards.
Remanufactured products would need to meet or exceed the quality characteristics of equivalent new products and display traceability information. The draft supports certified remanufactured parts in repairs, insurance repair systems and government-vehicle maintenance, while prohibiting their use in new-vehicle manufacturing.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing