China Cracks Down on Exports of Used Cars That Are Actually New

China issued new restrictions on exports of used vehicles, closing a loophole that had previously allowed traders to ship new cars into overseas markets under the guise that they were second-hand.

Under the rules issued by the Ministry of Commerce and other agencies, companies that want to export cars that have been registered for fewer than 180 days need to show proof that they can provide after-sales services at their destination. Firms will also need to show that they have the approval of the vehicle’s manufacturer to ship the car.