Automotive Trade Policy

Automotive trade policy refers to the collective framework of laws, regulations, administrative measures, and regulatory systems established by a government to standardise automotive import and export activities while driving vehicle consumption and market circulation. As China's automotive export volume continues to surge and its domestic market transitions from "volume expansion" to "stock optimisation", trade policies are undergoing a strategic pivot from mere "scale expansion" towards "quality enhancement" and "full-chain governance". Through multifaceted measures—such as new vehicle export licensing, used car export standardisation, aftermarket cultivation, and cross-border trade facilitation—a modernised regulatory ecosystem spanning all stages of vehicle trade and circulation is being established.

Export Governance: Shifting from Volume Growth to Quality Enhancement

Beginning in 2026, China's automotive export governance underwent a comprehensive overhaul, directly tackling long-standing issues exposed during years of rapid expansion, including fragmented export entities, price wars, and inadequate aftersales support.

Export licensing for battery electric passenger vehicles (BEVs) stands as the most critical regulatory reform in the new vehicle export domain. In accordance with an announcement issued in September 2025 by four government agencies, including the Ministry of Commerce, mandatory export licensing for BEV passenger cars took effect on 1 January 2026. The scope applies strictly to "other passenger vehicles equipped solely with an electric motor for propulsion and bearing a Vehicle Identification Number (VIN)" (Customs HS Code: 8703801090). Only vehicle manufacturers and their officially authorised distributors are eligible to apply. Applicants must be registered under the Ministry of Industry and Information Technology's (MIIT) "Announcement on Road Motor Vehicle Manufacturing Enterprises and Products", hold valid CCC (China Compulsory Certification) approval, and maintain established overseas aftersales and service networks. This framework aims to close unlicensed grey-export loopholes, curb destructive price cutting, and steer the industry from "volume-driven exports" towards "value- and quality-driven exports".

Used car export controls have tightened in parallel. In November 2025, four ministries, including the Ministry of Commerce, released the "Notice on Further Strengthening the Export Management of Used Cars", which took effect on 1 January 2026. Key measures include: cracking down on new cars disguised and exported as used vehicles—a grey practice known as "zero-kilometre used cars" that disrupted OEM pricing structures overseas. The new ruling requires any vehicle registered for under 180 days prior to export application to provide an official "Aftersales Maintenance and Service Confirmation" from the original manufacturer, without which an export licence will not be granted; standardising export licence applications to ensure vehicle make, model, and registration date strictly match the official Motor Vehicle Registration Certificate; instituting dynamic enterprise monitoring and market-exit mechanisms enforced against a "Negative List of Dishonest Behaviours in Used Car Export"; and tightening regulations on vehicles exported under the guise of modified units, requiring verified modification documentation, valid CCC certification, and full listing under MIIT vehicle catalogues. The China Association of Automobile Manufacturers (CAAM) noted that these measures hold "both practical and strategic significance for the global expansion of the nation's automotive sector". The Ministry of Commerce clarified that the overarching goal is to achieve "differentiated management, complementary strengths, and synergistic growth" across both new and used car export sectors.

Import and Cross-Border Trade Facilitation

In the import sector, policy initiatives focus on streamlining clearance procedures and reducing administrative compliance costs. In January 2026, the General Administration of Customs announced the nationwide rollout of 25 cross-border trade facilitation measures, with automotive trade as a central pillar. Measures include: expanding the pilot implementation of "two-in-one certificate" integration for imported motor vehicles to expedite documentation processing; supporting Comprehensive Bonded Zones in conducting bonded inspection services for automotive parts and components, backed by "whitelists" for pilot firms and goods to boost high-quality industrial development; and refining the inspection and supervision protocol for exported lithium-ion batteries to foster healthy trade across electric passenger vehicles and battery supply chains.

Automotive Aftermarket and Retail Circulation Reforms

In June 2026, nine government departments, led by the Ministry of Commerce, jointly issued the "Notice on Measures to Cultivate and Expand Automotive Aftermarket Consumption", targeting six core pillars: vehicle modification, motorsport events, motorhome and caravan camping, automotive repair and maintenance, vehicle leasing and rental, and classic heritage cars, laying out 17 targeted initiatives. Concurrently, a list of 40 pilot cities for automotive circulation and consumption reform was unveiled, encouraging local authorities to test new business models spanning aftermarket services, new car retail, used car trade, and end-of-life vehicle (ELV) recycling and scrapping.

From a regulatory standpoint, the new policy introduces tiered and categorised management for vehicle modifications, defines a catalogue of permissible modification items, and accelerates the formulation of national technical standards and safety specifications. Furthermore, it supports the branded, chain-based, and large-scale expansion of car rental operators, championing flexible mobility solutions such as inter-city drop-offs and rent-to-own schemes. The overarching policy framework adheres to a balanced strategy of "combining unified national rollout with pilot trials; revitalising existing vehicle stock while optimising incremental market growth; and enforcing robust regulatory oversight while fostering commercial agility".