Scrapped cars on the road again? Developing a circular economy and not going astray
2024-08-14
On August 11th, CCTV reported that in a certain area of Jiangsu, some unqualified small workshops openly recycled and dismantled scrapped cars, and illegally bought and sold the "five major assemblies" of scrapped cars (engine, steering gear, transmission, front and rear axles, and frame). Among them, some scrapped car engines are dismantled and turned into "second-hand engines" to return to the market, while some "valuable" scrapped cars are sold as complete vehicles and put back on the road. After the report was broadcasted, a local investigation team was established, stating that investigations have been initiated into the individuals and merchants involved in the case, and the materials involved have been sealed. A comprehensive investigation and rectification will be carried out. Motor vehicles must be scrapped after a certain period of use, but there are strict regulations and requirements on how to scrap and who will scrap them. Some unqualified small workshops dispose of scrapped cars mainly through illegal recycling and dismantling; Tampering with key identity information such as model and year on core components such as engines before reselling; Develop and grow into a complete chain of receiving vehicles and parcels from other places, dismantling and selling locally, and "buy and sell"; Selling scrapped vehicles that are prohibited from being driven on the road. According to the relevant provisions of the "Management Measures for the Recycling of Scrapped Motor Vehicles", the state implements a qualification recognition system for scrapped motor vehicle recycling enterprises. Without qualification recognition, no unit or individual shall engage in scrapped motor vehicle recycling activities. The "five major assemblies" of scrapped motor vehicles dismantled by recycling and dismantling enterprises that meet the conditions for remanufacturing can be sold to enterprises with remanufacturing capabilities for recycling; If there are no conditions for remanufacturing, it should be sold as scrap metal to smelting or crushing enterprises. In addition, necessary conditions such as storage, dismantling site equipment, and operating standards that comply with legal and regulatory requirements must be met. Violations of the above-mentioned national regulations continue to occur, due to both market reasons and weak regulatory oversight. From a market perspective, firstly, it is profitable. According to data from the Ministry of Commerce, from January to May this year, 2.2 million scrapped cars were recycled, a year-on-year increase of 19.4%. The industry expects the recycling scale to exceed 7 million vehicles this year. In this context, the recycling, dismantling, and sale of scrapped cars, as well as the sale of whole scrapped cars, have created a vast "money market", with small workshops flocking in one after another, mistaking fish for pearls. Secondly, currently, the development of the second-hand car and its parts market in some places is relatively chaotic, which provides a soil for accepting and digesting scrapped cars and returning their parts to the market. For example, in recent years, the media has repeatedly reported cases of second-hand cars with unknown origins and artificially fabricated key information, as well as many accident cars and water soaked cars that have been "beautified" and returned to the market at low prices. From a regulatory perspective, there is a current situation in some places where there are regulations and implementation of "two skins" in the field of scrapped car recycling and dismantling. The responsibilities of industry supervision and law enforcement are unclear, and even several departments are playing back and forth. In addition, some places have given strong support to the development of circular economy in the automotive industry as one of their local characteristic industries. However, due to considerations such as profits, taxes, employment, and investment promotion, there are inevitably elements of unwillingness to manage. It must be noted that the illegal recycling and dismantling of motor vehicles and their return to the market pose many hazards. Firstly, it poses a threat to public safety. Scrapped cars, whether in terms of machinery or wiring, are already aging or have varying degrees of malfunctions, making them a "ticking time bomb" when they return to the market. Secondly, laws, regulations, and related systems should be sidelined, disrupting market order, intensifying unfair competition, and disrupting the healthy development of the automotive circular economy. In recent years, the circular economy has been thriving, but some areas have also exposed many problems. The chaos such as illegally refurbished motor vehicle tires being reintroduced into the market, new energy vehicle waste batteries being returned to the market as inferior goods, and some old clothing recycling enterprises ignoring hygiene and putting recycled "foreign garbage" back into the market, all face the same challenge: when a place plans to develop characteristic industries, it should have clear ideas and corresponding regulations on what to follow, support, prohibit, and avoid. With the continuous growth of the number of motor vehicles and new energy vehicles, a large number of vehicles are entering a cycle of renewal and replacement. In March of this year, the State Council issued the "Action Plan for Promoting Large scale Equipment Renewal and Consumer Goods Trade in", which stipulated subsidies for buying new cars after scrapping and recycling automobiles. Subsequently, various regions followed specific plans for entering and exiting Taiwan. In this context, developing a circular economy for automobiles is clearly a green development path that conforms to policy and era requirements, and is also a powerful lever to boost local economy and develop characteristic industries. An industry that can see the future must have a feasible path. Under the normal market competition order and within the framework of the rule of law, we look forward to more places continuously taking the development of circular economy to a new level. (New Society)
Edit：Lubaikang Responsible editor：Chenze
Source：workercn.cn
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