China has officially launched its first bonded remanufacturing business in Chongqing, marking a significant step in the country’s industrial and environmental initiatives. On Friday, 1,080 used automotive transmission control modules arrived at the Chongqing Lianglu Guoyuan Port Comprehensive Bonded Zone, symbolizing the start of this innovative project.
What Is Bonded Remanufacturing?
Bonded remanufacturing is an advanced recycling and manufacturing process where international products are used as raw materials within special customs zones. These materials undergo high-tech refurbishment, resulting in products that meet or surpass their original quality. The remanufactured items are then exported, supporting sustainability and global trade.
Boosting International Competitiveness
“This bonded remanufacturing business helps us connect the international supply chain and industrial chain, achieving efficient procurement of raw materials and global layout of remanufactured products. It effectively reduces operating costs and enhances the international competitiveness of our products,” said Ruan Xijun, director of Chongqing Yuxiang Intelligent Technology, the company overseeing the project.
The company plans to remanufacture approximately 250,000 automotive transmissions, engines, and related components annually. This initiative is expected to generate a trade volume of nearly 1 billion yuan ($138.2 million).
Why Chongqing?
Chongqing is a leading industrial hub in Southwest China, known for its rapid growth in automobile and new energy vehicle (NEV) production. In 2024, the city’s total auto production reached 2.54 million units, with NEV output hitting 953,200 units—a staggering year-on-year increase of 90.5%. This surge in production significantly outpaced the national growth rate by nearly 60 percentage points, according to the Chongqing Economic and Information Technology Commission.
Addressing Industry Bottlenecks
Despite China’s advancements in remanufacturing technology, companies have faced obstacles in expanding internationally due to raw material shortages. Chongqing Customs discovered that while local enterprises had achieved a high level of expertise in automotive parts remanufacturing, their growth potential was limited by supply chain constraints.
To tackle this issue, Chongqing Customs, in collaboration with the city’s Commission of Commerce and the Ecological Environment Bureau, developed a comprehensive supervision plan. This effort led to the approval of Chongqing Yuxiang Intelligent Technology as a bonded remanufacturing pilot company.
Environmental and Economic Benefits
The bonded remanufacturing initiative not only strengthens China’s position in the global automotive industry but also supports sustainability efforts. By reusing and improving existing automotive components, the program reduces waste and conserves resources. Additionally, it enhances trade efficiency and promotes the adoption of environmentally friendly production practices.
A Model for Future Development
China’s move into bonded remanufacturing could set a precedent for other industries looking to integrate sustainability with global trade. With Chongqing leading the way, other cities may soon adopt similar initiatives, further strengthening China’s role in the international remanufacturing market.
