China-produced cars to be shipped overseas at a port in Jiangsu province. (Photo/Xinhua)

China recently launched the export of second-hand cars in 10 regions, including Beijing, Tianjin and Shanghai, according to a statement released by the Ministry of Commerce.

The circulation of second-hand vehicles remains low in China, which can be attributed to factors that hinder the cross-region flow, such as restrictions on sales of non-local used vehicles and a stricter discharge standard of pollutants.

In 2018, figures suggested that every 100 Chinese households in urban areas owned over 40 cars, and private vehicles were commonly seen in rural areas. As more new cars are sold, the number of used cars also increases.

Statistics indicate that the trading volume of pre-owned cars accounts for 5.7 percent of car ownership, lower than the 15.5 and 9.4 percent seen in the US and Japan, respectively.

Currently, the inventory of second-hand cars in China is nearly 14 million, but few of them are exported overseas, including some top end vehicles like Land Rover and Mercedes-Benz.

In Japan, 1.3 million used cars are sold abroad every year while the US exports 830,000 annually, Qin Zhiwei, chairman of Guangdong Good Car Holding Ltd. Co., told People's Daily Overseas Edition.

He said that exporting used cars is a necessary measure to expand China's car market.

According to industrial data, about 13.8 million used cars were traded in China last year, much less than the number of new vehicles sold.

However, developing countries provide a steady source of demand for second-hand cars, especially countries along the Belt and Road.

China enjoys advantages in exporting cars overseas, with around 70 percent of countries around the world using cars with a steering wheel on the left of the vehicle, as the Chinese do.

The Chinese car industry is competitive when it comes to emissions, as China will soon fully implement the sixth emission standard for vehicles, the world's strictest, said Xu Haidong, assistant to the secretary general of China Association of Automobile Manufacturers.

Xu noted that exporting used cars will be a new way to stimulate China's domestic market.

China will make 60 billion yuan by exporting 1 million used cars each priced at 60,000 yuan, said Li Xiang, president of the China Auto Dealers Chamber of Commerce.

On the one hand, the exports of second-hand cars will further increase the total volume of foreign trade by driving the exports of auto parts and maintenance services, said Li.

Despite the benefits, China also faces some difficulties when used cars go abroad, such as the low public recognition of Chinese car brands and various differing import policies.

As the chairman of Guangdong Good Car Holding Ltd. Co. noted, exporting used cars is not an easy thing for Chinese enterprises, and it will take time to expand the overseas market and build an after-sales network.