China Finalizes Used-Car Sales Guidelines

China’s State Council has imposed new nationwide rules on used-car sales that are intended to improve the country's market for second-hand vehicles.

The rules order local government to lift current restrictions by the end of May on the inflow of used cars from other regions. China's Xinhua news service notes that about 90 of the country’s largest cities have monopolized local used-car sales by imposing higher emission standards on such vehicles brought in from other locations.

The guidelines also lower taxes, ease credit and streamline registration requirements for second-hand cars.

Some 174 million cars are in use in China today, and 24 million vehicles are being added annually, according to Xinhua. It cites data from the National Bureau of Statistics indicating that consumer spending on automobiles and fuel represented almost 20% of retail consumption in China last year.

China’s used-car market could eventually be worth 2 trillion yuan ($307 billion) per year, according to the news service.