China’s first bonded remanufacturing business has launched, as 1,080 used transmission modules arrived in Chongqing’s bonded zone, where goods can be processed without immediate duties or taxes, China Daily reported.
The company expects to remanufacture around 250,000 automotive transmissions, engines, and components annually under bond – restoring them to like-new condition before exporting them or reselling them in the domestic market – generating nearly CNY 1 billion (GBP 138.2 million) in trade.
Chongqing Customs explains that bonded remanufacturing differs from conventional manufacturing by utilising special customs zones to recycle international products as raw materials. Advanced techniques transform these materials into high-quality products – matching or surpassing the originals – for export. This approach promotes sustainability and environmentally friendly practices.
‘This bonded remanufacturing venture links us to the global supply and industrial chains, streamlining raw material procurement and expanding our remanufactured products worldwide. It significantly cuts operating costs while boosting international competitiveness’, said Ruan Xijun, director of Chongqing Yuxiang Intelligent Technology, the company behind the imports.
As a key industrial hub in South-west China, Chongqing leads in auto manufacturing, new energy vehicle (NEV) production growth, and sales of high-end models. In 2024, the city produced 2.54 million vehicles, including 953,200 NEVs, up 90.5% year-on-year, surpassing the national growth rate by nearly 60 percentage points, according to the Chongqing Economic and Information Technology Commission.
Chongqing Customs found that some local automotive firms have reached an internationally advanced level in parts remanufacturing. Despite strong global demand, a raw material shortage limits their international expansion, creating industry bottlenecks and indicating even greater growth potential.
To tackle this challenge, Chongqing Customs joined forces with the city’s Commission of Commerce and the Ecological Environment Bureau to devise a comprehensive oversight plan, culminating in the approval of Chongqing Yuxiang Intelligent Technology as a bonded remanufacturing pilot.
Remanufacturing is a sustainable industrial process that uses advanced refurbishment techniques to restore used products to like-new condition. Unlike simple recycling, it involves disassembly, thorough inspection, replacement of worn components, and rigorous testing to ensure that the final product meets or exceeds the original specifications. This process significantly reduces waste, conserves raw materials, and lowers production costs, making it both economically and environmentally beneficial.
The primary goal of remanufacturing is to extend product life cycles while maintaining high performance and reliability. It enhances global supply chains by providing cost-effective, high-quality alternatives to new products, boosting international trade and reducing environmental impact.
