Recently, the General Administration of Customs data released by the China Association of Automobile Manufacturers showed that from January to December 2024, the cumulative import and export total of automobile goods in China was 302.82 billion US dollars, a year-on-year increase of 5.5%. Among them, the import amount was 69 billion US dollars, a year-on-year decrease of 11.3%; The export amount was 233.82 billion US dollars, a year-on-year increase of 11.7%.

Industry insiders believe that second-hand car exports are becoming a new force in China's automobile exports and will play a key role in promoting the optimization of the domestic automobile industry structure.

As early as 2019, China launched a pilot program for the export of second-hand cars. In February 2024, the Ministry of Commerce and five other departments issued a notice on matters related to the export of second-hand cars, which clearly stated that the export of second-hand cars would be expanded nationwide from March 1, 2024. This adjustment has opened up broader development space for second-hand car export enterprises, promoting the expansion of industry entities and the release of potential. At the same time, policy support has provided opportunities for many small and medium-sized enterprises to participate in the export of second-hand cars, further promoting the overall growth of automobile export scale.

ZMEV Limited is a new energy vehicle brand focusing on going to sea. The export of complete vehicles and parts is one of ZMEV Limited's main businesses. Liu Yanjun, vice president of the company, said, "In the field of second-hand vehicle trade, we have established a mature international route for customs declaration and shipment of complete vehicles, forming stable routes such as' Shanghai Dubai, Guangzhou Djibouti, Qingdao Mombasa, Khorgos Almaty ', and at the same time laying out overseas warehouses such as Dubai and Ghana to further cultivate overseas. At present, we have formed trade cooperation with more than 40 overseas countries, and Africa is our important market."

While the second-hand car industry is accelerating its overseas expansion, export enterprises are facing many challenges in cross-border finance, including difficulties in receiving payments, high costs, and significant financial pressure. Liu Yanjun said, "The situation we often face in foreign trade collection is that due to the shortage of local US dollars, many African buyers will tell us when they need to make payment that they cannot exchange US dollars in the near future, but there is a 'way' to directly pay to our domestic bank card. Once this operation is carried out, we will face the situation of card freezing, which is very risky

It is understood that enterprises engaged in the export of second-hand cars, especially small and medium-sized enterprises, have difficulty obtaining cross-border financial services provided by traditional financial institutions, and have long faced difficulties such as account opening, payment collection, and high costs. Traditional financial institutions mainly serve large multinational corporations, and their anti money laundering risk control models are also developed for such enterprises. When facing small and medium-sized enterprises with relatively diverse transaction characteristics, how to efficiently and cost effectively obtain sufficient data and information, and accurately control risks has become an unresolved issue for traditional financial institutions.

To solve the above problems, XTransfer, a one-stop cross-border financial and risk control service company for foreign trade enterprises, has created an anti money laundering risk control infrastructure for small and medium-sized enterprises since its establishment. With the help of AI, big data technology and other efficient anti money laundering risk control audits, XTransfer cooperates with globally renowned financial institutions to provide convenient cross-border financial services for small and medium-sized foreign trade enterprises. Currently, over 600000 companies use XTransfer for cross-border trade settlement.

For example, ZMEV LIMITED attempted to receive payments using the local African account provided by XTransfer. Buyers can directly pay in local currency without intermediary fees, and the payment can be received on the same day. We have solved long-standing problems in the past, and business in the African market has become increasingly smooth, "said Liu Yanjun.

For the second-hand car export industry, we delve into business scenarios and rely on strong global financial cooperation and anti money laundering risk control capabilities to provide safe, compliant, efficient, and low-cost cross-border financial services, improve the efficiency of second-hand car export trade settlement, and alleviate the financial turnover pressure of trading enterprises, "said the relevant person in charge of XTransfer.

Article source: China Economic Herald