China’s auto industry inflated sales for years by exporting new cars as ‘used’

News Snapshot:

Open this photo in gallery: A Reuters review showed that regional governments in China actively encourage the export and sale of fake used cars.CHINA DAILY/Reuters China’s auto industry has inflated car sales for years through a burgeoning government-backed grey market that registers new cars right off the assembly line and then ships them overseas as “used” vehicles. These so-called “zero-mileage” cars have never been driven but they are being exported as used to markets like Russia, Central Asia and the Middle East, allowing Chinese automakers to show growth and to dispose of cars that it would be difficult to sell...