China Launches First Bonded Remanufacturing Business in Chongqing for Sustainable Growth

20 Mar, 2025

China has launched its first bonded remanufacturing business in Chongqing's Lianglu Guoyuan Port Comprehensive Bonded Zone. The initiative marks a major step in China’s efforts to promote sustainable industrial development and global trade. The first shipment included 1,080 used automotive transmission control modules, which will be remanufactured and exported. This model allows companies to import used products, refurbish them, and re-export without incurring certain taxes, reducing costs and boosting competitiveness.

Chongqing Yuxiang Intelligent Technology, the key enterprise behind this initiative, plans to remanufacture approximately 250,000 automotive transmissions, engines, and components annually. The company is targeting a trade volume close to 1 billion yuan ($138.2 million), reinforcing Chongqing’s role as a critical hub for remanufacturing and global trade. The bonded remanufacturing business streamlines procurement processes and enhances global distribution channels, making it an attractive model for international businesses.

Chongqing’s strategic location and comprehensive bonded zones have played a crucial role in attracting such high-tech manufacturing initiatives. The city has positioned itself as a leading logistics and manufacturing center, integrating advanced supply chain solutions to drive industrial growth. This move aligns with China's broader strategy to advance its industrial capabilities while adhering to circular economy principles.

The remanufacturing model supports China’s commitment to sustainable development and environmental goals by promoting the reuse of valuable components. By reducing waste and minimizing reliance on new raw materials, the initiative helps in cutting carbon emissions and conserving resources. As global industries push for greener solutions, China’s bonded remanufacturing efforts set a precedent for future sustainable manufacturing practices.

This development underscores China's ambition to strengthen its global supply chain presence while fostering environmentally responsible industrial growth. It highlights Chongqing’s potential as a future hub for innovative and sustainable manufacturing solutions.

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