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Chen Lin, deputy director of the Department of Market System Development under China's Ministry of Commerce, recently spoke at the "2004 China's Auto Parts Industry Development Forum" held in Shiyan City, Hubei Province. He revealed that the government is planning to introduce new management measures aimed at regulating the automobile dismantling and auto parts sectors, in an effort to address the current market chaos.
According to Chen, the rapid growth of China’s automotive industry has brought both opportunities and challenges. One of the major issues is the disorder in the auto dismantling process and the confusion within the auto parts market. The official estimates that approximately 1 million vehicles are eligible for dismantling each year, but only less than half are actually processed. This gap poses serious safety risks.
Additionally, there is a lack of clear regulations regarding the responsibilities of auto parts dealers and the handling of counterfeit or substandard products. For instance, it remains unclear how much responsibility should be borne by private car owners or how to effectively tackle the problem of fake auto parts in the market.
Chen emphasized that the upcoming regulations will clarify the obligations of all parties involved in the auto parts and vehicle circulation markets. The proposed measures include requiring auto parts dealers to obtain not only manufacturer authorization but also approval from the auto parts management authority before entering the market. Used cars must be sold through formal contracts that clearly define the rights and duties of both buyers and sellers. Furthermore, the government plans to streamline the process for dealing with counterfeit goods, reducing the administrative burden on relevant departments.
These reforms are expected to bring more transparency, accountability, and efficiency to the auto industry, ensuring safer and more reliable operations across the board.