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China cracks down on “zero-mileage” auto exports used to inflate sales and claim tax perks

by Investor News Today
November 17, 2025
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China, Kazakhstan pledge closer trade and cooperation
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China has launched new guidelines to curb the export of “zero-mileage” autos — brand-new automobiles registered as used — in a bid to cease automakers overstating gross sales and claiming tax advantages tied to inflated export volumes. The follow has drawn scrutiny as China turns into the world’s largest automotive exporter, with home producers grappling with intense competitors and extra stock at residence.

The laws, printed by the Commerce Ministry, apply to any automobile exported inside 180 days of registration. Authorities say the loophole has distorted trade knowledge by making it seem that surplus inventory is being bought abroad, whereas many consumers later uncover they’re unable to entry after-sales assist or spare elements, harming the fame of Chinese language manufacturers overseas.

The crackdown targets falsified registrations, doctored export paperwork and violations of each Chinese language and international import laws. Beginning January 1, producers can be required to supply formal ensures of after-sales service and disclose the place prospects can get hold of repairs.

The ministry didn’t determine particular firms, although experiences of the follow span a number of provinces.

—

The brand new guidelines could gradual China’s export surge in early 2026 and stress automakers counting on abroad markets to soak up extra home provide.



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