The Chinese Ministry of Commerce has announced plans to start exporting used cars to Africa, Asia and Europe, with Nigeria as the main target for the first 300 cars.
The move, according to the ministry, is part of its efforts to deepen the Belt and Road Initiative (BRI) and promote stability through foreign trade.
The BRI is a global development strategy which the Chinese government adopted, involving infrastructure development and investments in 152 countries and international organizations in Africa, Asia, Europe the Middle East and the Americas.
The ministry of commerce said the first batch of 300 used cars with a total value of $2.5 million comprises of “Land Rover, Toyota, Hyundai, Volkswagen, Trumpchi, King Long, Yutong, Zhongtong and WOHO brands and they are being taken to destinations that include the Lagos port (Nigeria), Sihanoukville Autonomous port (Cambodia), Rangoon Port (Myanmar) and Vorsino and Saint-Petersburg ports (Russia).”
In a statement released by the ministry, “Trade in new cars in China last year almost doubled the 13.82 million used cars figure, trading volume of used cars in developed countries, in comparison, was about two times that of new car sales.
“China is hoping to key into this yawning advantage lying beyond its borders. It is estimated that used car exports may fetch about 60 billion Yuan for China in export value if the market is fully opened up. It is also expected the trade would generate higher auto parts and maintenance service exports.
“With all processes done, the first used cars export business in China finally sailed at Nansha Port, Guangzhou, on July 17, 2019 marking a new milestone and economic significance for China’s automobile industry,” the statement added.