The remanufacturing industry has been recognized as a promising emerging sector, yet it hasn't received the same level of public enthusiasm as new energy or advanced materials. Many remanufacturing companies still struggle with low social recognition, poor recycling of used parts, and weak implementation of supportive policies. While I saw great potential in this field, I also faced significant challenges that made progress difficult at every step.
"Our products are 'remanufactured,' but many consumers still think we're just doing repairs or renovations," said Zhang, a manager at an electromechanical equipment remanufacturing company. What worries him is the common misconception about product quality. "Consumers often prefer new items over remanufactured ones due to long-standing habits, and they have doubts about the reliability of remanufactured goods."
Zhang's concerns are not unique. Despite being labeled an emerging industry, remanufacturing faces real obstacles—low consumer awareness, limited access to used parts, and a lack of market confidence. The industry is full of potential, but it's struggling to move beyond its current limitations.
**A Win-Win Industry**
China is entering a peak period for the scrapping of machinery and household appliances. According to recent estimates, more than 2 million old machine tools have been in use for over a decade, and 25% of construction equipment is operating beyond its intended lifespan. Additionally, around 5 million cars are scrapped annually—figures that may even be underestimated.
Liu Binzhou, a representative from Wuhan Qianlima Construction Machinery Group, highlighted the importance of remanufacturing. "If we don’t handle these machines properly, they’ll end up as scrap metal, lost value, and wasted resources." He emphasized that remanufacturing can recover a lot of hidden value and reduce environmental impact.
Yang Chunping, an expert in circular economy planning, pointed out that remanufacturing saves 50% of costs, 70% of materials, and 60% of energy compared to producing new products. For example, China currently has about 8 million machine tools, and at a 3% annual elimination rate, nearly 240,000 units are retired each year. If these are remanufactured, it could save 70% of the cost and support sustainable production.
With over 90 million civilian vehicles on the road and 65 million private cars, the automotive sector represents a massive untapped resource. However, the challenge lies in both sourcing used parts and convincing consumers to choose remanufactured options.
**Seeing the Prospects, Stuck at the Start**
Li Feng, General Manager of Weichai Power Remanufacturing Company, identified two key factors for success: access to used components and a strong market for remanufactured products. “We need two platforms: one for sales and another for recycling,†he explained.
Liu Binzhou agrees. “The biggest problem today is that we can’t get enough used parts, and there’s no clear path to sell them. The entire supply chain isn’t functioning well.â€
One major barrier is the lack of a free market for auto parts. Formal remanufacturers struggle to acquire used components, relying instead on limited sources like repair shops. This makes it hard to meet demand and scale operations.
Society’s perception remains a hurdle. Many people still see remanufacturing as simple refurbishment rather than a high-quality alternative. Liu stresses the need to educate customers: “Remanufactured products are not inferior; they meet or exceed new standards, with full warranty and after-sales service.â€
In contrast, in developed countries, remanufactured parts are priced at about 70% of new ones, with 30% coming from used components. In China, however, remanufactured goods are often valued at only 50% of their new counterparts—highlighting a big gap in market understanding.
Globally, the remanufacturing industry is worth over $140 billion and spans sectors like automotive, industrial equipment, and defense. But in China, the industry is still in its early stages, with limited scale and higher costs.
**Challenges and Opportunities**
Luo Jianming, from Jinan Fuqiang Power Co., Ltd., calls for more government support. “We need tax breaks, financial subsidies, or direct support to consumers,†he said. Taxation issues also pose a problem: without proper invoices, remanufacturers can’t claim input tax credits, increasing their costs.
Government initiatives are slowly improving the situation. In 2010, the National Development and Reform Commission, along with other ministries, issued guidelines to promote remanufacturing. By 2011, pilot projects were expanded to explore policy frameworks, technical standards, and regulatory systems.
Currently, China’s remanufacturing industry is mainly focused on auto parts and electromechanical equipment. By 2015, the number of remanufacturing companies was expected to exceed 100, with a growing variety of products.
Liu Binzhou suggests starting with high-value components and gradually expanding. “It’s not feasible to remanufacture everything. We must focus on what’s most economically viable.â€
He also emphasizes the importance of international cooperation and technological innovation. “Europe, the U.S., and Japan have decades of experience. We should learn from them and develop our own solutions.â€
Yan Jingjing of Cummins Remanufacturing believes that protecting intellectual property is essential. “It helps combat counterfeit products and strengthens the competitiveness of remanufacturers.â€
Experts agree that the government should establish clear standards for remanufactured products, ensuring quality and longevity. At the same time, tax incentives and promotional campaigns are needed to boost consumer confidence and support industry growth.
The road ahead is challenging, but with the right policies, education, and innovation, remanufacturing has the potential to become a cornerstone of China’s sustainable development.
Guangdong Kinen Sanitary Ware Industrial Co.,Ltd. , https://www.kinengroup.com