(Yicai Global) May 6 -- China has approved the export of used cars in 10 pilot areas, including Beijing.

The country's Ministry of Commerce, Ministry of Public Security and General Administration of Customs jointly issued a notice yesterday that second-hand car exports will begin in suitable locations and clarified the requirements and tasks for these.

The circular mandates strict selection and supervision of export companies and that these optimize their services.

Pilot areas include Tianjin, Shanghai, Xi'an, Zhejiang (Taizhou), Shandong (Jining), Guangdong, Sichuan (Chengdu), Qingdao and Xiamen. These are all either inland areas or coastal ports with unique advantages in international trade.The country will develop export test specifications for previously-owned cars and have third-party agencies issue test reports to ensure the quality and safety of vehicles sent abroad. Exporters must also provide overseas after-sales services to establish and maintain the image and reputation of Chinese used car exports.

Since China drives on the right side, the sector has called for shipments to target developing countries along the Belt and Road that also use left-hand drive, including those in Central Africa, Central Asia and Southeast Asia -- particularly Myanmar, Cambodia and Laos, and also Eastern Europe. 

The country sold over 138 million second-hand autos last year in an 11 percent rise on the year before, according to the Beijing-based China Automobile Dealers Association.

The sector will maintain over 10 percent growth this year, with 15 million used cars sold, insiders also project. This export trade thus holds great potential, in their view.

Editor: Ben Armour