China plans to boost its remanufacturing sector in an effort to develop a green economy and establish an energy-saving and environmentally friendly society, said He Bingguang, an official with the environment and resources development of the National Development and Reform Committee (NDRC) at a press conference during the annual national parliament session.

He Bingguang, an official with the environment and resources development of the National Development and Reform Committee shows a logo of remanufactured auto parts (NDRC)

Remanufacturing is an industrial process in which worn-out products are restored to like-new condition. It differs from other recovery processes in its completeness: a remanufactured product should match customer expectations for new products.

He said remanufacturing can save 50 percent on cost, 60 percent on energy and 70 percent on materials during production. It will help to form a circular economic growth model from resource to product to discard product to remanufacturing materials. It also promotes the service industry and expands employment.

The NDRC began a pilot program in auto parts remanufacturing in March 2008. China estimates it will be able to remanufacture 105,000 engines, 60,000 automotive transmissions, 510,000 electric generators by the end of this year, with an output value worth 2 billion yuan (US$300 million).

In 2009, China overtook the United States as the world's largest automobile market and Japan as the world's largest automobile producer. In 2010, its vehicle inventory will surpass 70 million, a huge market for remanufacturing auto parts.

The NDRC has been drafting development guidelines for the remanufacturing industry and plans to extend the pilot program to include construction machinery, mining machinery and office supplies, such as printer cartridges. It will also improve the labeling system on auto parts to better regulate reclaim channels.

To protect consumers' right to know, the NDRC has issued a logo of remanufactured auto parts and requires it to be marked in a "notable place."