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Hunan’s over 3 billion engineering machinery remanufacturing equipment goes overseas, and the system innovation of the pilot free trade zone shows results

At the first "Members' Passage" of the Fourth Session of the 13th Provincial Committee of the Chinese People's Political Consultative Conference (CPPCC), Tan Haoran, a member of the provincial CPPCC, shared the story of exporting used construction machinery. Through institutional innovation, Hunan has overcome challenges facing the industry's expansion into overseas markets; over 3 billion yuan worth of remanufactured equipment has been exported globally, and the Pilot Free Trade Zone has yielded fruitful results.

On the morning of February 2, at the first “member channel” of the fourth session of the 13th Provincial Committee of the Chinese People’s Political Consultative Conference, Tan Haoran, member of the Provincial Committee of the Chinese People’s Political Consultative Conference and full-time deputy director of the China (Hunan) Pilot Free Trade Zone Work Office, told everyone the story of second-hand construction machinery going overseas.

Changsha, Hunan is known as the “Capital of Construction Machinery”. However, the export of second-hand construction machinery and equipment has faced many difficulties.
It is difficult to dispose of legal machines, control the quality of remanufacturing, and obtain input invoices. These “three difficulties” are like a huge “barrier lake”, blocking the way for industries to go overseas.
In order to break this dilemma, Tan Haoran said that they have visited more than a dozen cities at home and abroad, visited hundreds of companies, and combined with the opinions and suggestions of some departments and associations, they took the lead in carrying out the reform of the construction machinery remanufacturing system in the country.

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In 2024, the Provincial Committee of the Chinese People’s Political Consultative Conference brought this reform proposal to the National Two Sessions. The proposal was listed as a key proposal by the National Committee of the Chinese People’s Political Consultative Conference. It received the attention and support of many national ministries and commissions such as the Central Reform Office and the Ministry of Commerce, and promoted the implementation of a series of reform measures.
Tan Haoran introduced that they were the first in the country to issue export standards for construction machinery remanufacturing and maintenance.
With standards in place, product quality can be improved and export competitiveness can be enhanced.
At the same time, we have cooperated with the courts, development and reform and other departments to carry out innovations in targeted inquiry for judicial disposal by legal agencies.
This measure has achieved remarkable results, reducing the disposal time from 7 months to 5 months, saving 5% of costs, and saving the company more than 85 million yuan.

In the construction machinery remanufacturing and maintenance base in Changsha Area of China (Hunan) Pilot Free Trade Zone, customs, taxation, public security and other departments have set up special service windows to provide “one-stop” services.
Thanks to these measures, more than 3 billion yuan of remanufacturing equipment has been exported from Hunan to the world in more than two years, and the former “barrier lake” has become a “new channel” for industries to go overseas.

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Tan Haoran also introduced that the Hunan Pilot Free Trade Zone is “borrowing the port to go to sea” and has joined hands with Dongfang City in Hainan Province to create the country’s first free trade zone and Hong Kong jointly built park – the Xiangqiong Advanced Manufacturing Industry Park.
Taking advantage of the island-wide customs closure in Hainan, this has become another important platform for Hunan enterprises to go overseas.
Taking Sany as an example, if a second-hand excavator returns to Hong Kong from Southeast Asia and is remanufactured in the Xiangqiong Advanced Manufacturing Industrial Park for export, it can save about 8% of the cost.

“The story of second-hand construction machinery going overseas is a microcosm of the Hunan Pilot Free Trade Zone’s use of ‘institutional innovation’ to solve development problems.” Tan Haoran said that in the more than five years since its approval, the Hunan Pilot Free Trade Zone has produced a total of 109 innovative results, 7 of which have been replicated and promoted nationwide.
Talking about the future focus of his duties, Tan Haoran said firmly that the next step will be to focus on the innovative development of the entire industry chain of advanced equipment manufacturing, economic and trade with Africa and other fields, conduct in-depth research and consultation, and turn the “blocking points” that restrict development into “bright spots” of institutional innovation and “growth points” of economic development.

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