China's First Bonded Remanufacturing Business Takes Flight in Chongqing

China's First Bonded Remanufacturing Business Takes Off

On Friday, a shipment of 1,080 used automotive transmission control modules arrived at the Chongqing Lianglu Guoyuan Port Comprehensive Bonded Zone, marking a significant milestone for China's remanufacturing industry. This shipment signifies the official launch of China's first bonded remanufacturing business.

The company behind this initiative, Chongqing Yuxiang Intelligent Technology, plans to remanufacture approximately 250,000 automotive transmissions, engines, and their components annually under bond. This is expected to generate a trade volume of nearly 1 billion yuan ($138.2 million).

Bonded remanufacturing offers several advantages over traditional manufacturing. It utilizes special customs zones to recycle international products as raw materials, transforming them into high-quality products through advanced methods. These remanufactured products are on par with or even surpass the quality of the original ones and are sold abroad, promoting sustainable and environmentally friendly practices.

Chongqing, a major industrial hub in Southwest China, has a strong track record in automobile production, particularly in the electric vehicle (NEV) segment. In 2024, the municipality produced 2.54 million automobiles, including 953,200 NEVs, representing a year-on-year increase of 90.5%. This growth significantly outpaced the national average by nearly 60 percentage points.

Recognizing the potential of remanufacturing, Chongqing Customs collaborated with the city's commission of commerce and ecological environment bureau to develop a comprehensive supervision plan. This plan successfully led to the approval of Chongqing Yuxiang Intelligent Technology as a bonded remanufacturing pilot, paving the way for the company's groundbreaking initiative.