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Chen Lin, the deputy director of the Department of Market System Development under China's Ministry of Commerce, recently addressed 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 market, which has been plagued by disorder and inefficiency. According to Chen, the rapid growth of China’s automotive industry has brought both opportunities and challenges. Among the most pressing issues are the disorganization of vehicle dismantling processes and the confusion in the auto parts market.
Chen pointed out that approximately one million vehicles are expected to be dismantled each year in China, but only less than 50% are actually processed. This gap poses serious safety risks. Moreover, there is currently no clear framework for managing the responsibilities of auto parts dealers or addressing the problem of counterfeit and substandard products in the market. The lack of standardized regulations has led to a chaotic environment where accountability is often unclear.
In response, the Ministry is working on developing comprehensive regulations for both the auto parts market and the automobile circulation sector. These rules will define the responsibilities of all stakeholders involved in the dismantling process and the sale of used car parts. Key proposals include requiring auto parts dealers to obtain not only manufacturer authorization but also approval from the auto parts market regulatory body. Additionally, used car transactions would need to involve formal contracts that clearly outline the rights and obligations of both buyers and sellers.
The new policies also aim to streamline the involvement of government agencies in combating counterfeit and low-quality products, reducing the costs and complexities associated with enforcement. By implementing these changes, the government hopes to bring more order and transparency to the auto industry, ensuring safer and more reliable operations for consumers and businesses alike.