Investors encouraged to enter scrap vehicle sector

Private and foreign investors are being encouraged to enter the scrap motor vehicle business to fuel competition in China's huge market, officials at the Ministry of Commerce said on Friday.

The newly amended rules on the recycling of junk vehicles, approved by the State Council last month, remove barriers to private and foreign capital, Vice-Minister of Commerce Wang Bingnan said at a news conference of the State Council Information Office.

"In practice, the number of recycling enterprises was strictly controlled, with some areas having only one, which created a monopoly and restricted private capital," Wang said, noting that the new rules eliminate the limits.