China Plans Six-Month Ban on New Car Resales to Curb Zero-Mileage Sales

China's Ministry of Industry and Information Technology is planning to ban the resale of new cars within six months of their initial registration to combat the widespread practice of zero-mileage used car sales. This practice involves registering and insuring cars before sale to artificially inflate sales figures and meet aggressive targets, a tactic driven by intense price wars and overcapacity in China's auto market. The proposed ban, reported by Auto Review and supported by the China Automobile Dealers Association, aims to curb fraud and improve market transparency. Major automakers like BYD and Chery are expected to hold dealers accountable for violations, including pre-licensing unsold vehicles. Additionally, a coding system for tracking used car exports is being considered to prevent exploitation of policy loopholes. This potential crackdown follows public criticism from industry leaders and editorial condemnation from Communist Party media, signaling strong central government intent to regulate the market.