Shanghai starts its 'parallel import' pilot for foreign cars

Shanghai Free Trade Zone is to become the first place in China where dealers can be authorized for so-called "parallel imports" of cars direct from manufacturers.

The Shanghai Municipal Commission of Commerce and the Shanghai Free Trade Zone administrative committee have set strict restrictions on which dealers will be able to operate the new system.

Some 20 auto dealers registered in the zone will participate at first, operating alongside the zone's franchised dealers.