On the one hand, the continuous increase in the volume of second-hand equipment used in China, on the other hand, is the deregulation of these transactions. According to the statistics provided by the National Equipment Rental and Used Equipment Professional Committee, by the end of 2010, the transaction volume of used equipment for construction machinery nationwide had exceeded 100 billion yuan, and the trading volume exceeded 5 million units. However, according to reports, such a large amount of second-hand equipment trading volume, but more than 80% is a private transaction.

Unstandardized trading methods Yu Xiaomei, Secretary-General of the National Equipment Rental and Used Equipment Professional Committee, used the concept of “post-market” used equipment as early as a few years ago as an industry expert in researching the circulation of used equipment.

As far as the construction machinery industry, the most active industry for used equipment, is concerned, it is conservatively estimated that by the end of 2010, the market for Chinese construction machinery products will be around 4 million units. At the same time, the circulation of second-hand equipment also showed a rapid upward trend. Between 2006 and 2010, the average annual growth rate exceeded 20%. Yu Xiaomei asserted that: With the continued increase in the amount of the market, China's construction machinery industry has begun to enter the "equipment replacement period," the next 15 to 30 years will usher in a golden period of second-hand equipment industry. Second-hand equipment will enter the industrialized operation, forming a series of industrial chains such as recycling, processing (maintenance, refurbishment, remanufacturing), distribution, after-sales services, leasing, and credit services of used equipment to the direction of large-scale operations. As a result, the construction machinery industry has entered the "post-market" era. Although the transaction volume of used equipment is large and increases year by year, the entire transaction process is opaque and non-standard.

At present, there are nearly 800 second-hand equipment markets that have been formed in China. There are as many as 28 types of main products divided into 26 provinces and more than 250 cities. In these markets, the trading of used equipment is mainly done by some self-employed operators. In the course of trading, buyers often rely on their own buying experience or the opinions provided by the dealer to negotiate the price of the equipment with the seller. Once the transaction is completed, the dealer does not provide the invoice. According to analysis by industry insiders, this transaction method has three defects: First, the real price of second-hand equipment is not transparent, and it is difficult to guarantee the interests of buyers. Second, sellers do not have relevant purchase receipts and equipment-related information, which is not conducive to the later period. Equipment maintenance; Thirdly, transactions do not pay relevant tax revenues to the country, and it is difficult for industry statistical agencies to obtain real transaction data.

However, for traders, they also have untold difficulties. Although the country has relevant tax policies for the trading of second-hand equipment, due to the lack of qualifications and quality appraisal standards for second-hand equipment, the taxation department has difficulty identifying the used equipment, thus affecting the implementation and implementation of the national preferential policies.

In addition, the use of second-hand equipment transactions, local tax standards are not uniform. Currently, taxes on second-hand equipment transactions are basically carried out according to local policies. Some are levied on value-added tax and some on business tax. The maximum tax rate is 17%, and the lowest is only 2%. The tax rates vary widely. This, to a certain extent, also makes dealers of second-hand equipment more inclined to adopt unregulated trading methods.

The crux of the matter is why trading volume in private transactions is so large. Where is the crux of the problem? The relevant person of the national equipment leasing and used equipment special committee stated that the main reason is that there is a gap in the construction of the second-hand equipment circulation standard system.

In order to solve this problem as soon as possible, the National Equipment Rental and Used Equipment Professional Committee has focused its efforts on establishing a standard system for the circulation of used equipment in recent years. In May 2009, the committee completed the formulation and approval of the "General Rules for the Circulation of Second-hand Equipment" standard and was formally promulgated and implemented by the Ministry of Commerce on March 1, 2010. In September 2010, the National Equipment Rental and Used Equipment Professional Committee was commissioned by the Ministry of Commerce to start the drafting of four circulation technology standards such as “Used excavators, loaders, concrete pump trucks, and truck cranes”. These technical standards are formulated in response to the demand for the circulation of second-hand equipment. The core of the technical standards is the “Second-hand equipment quality appraisal report”.

According to the latest news from the reporter, the four technical standards for second-hand equipment circulation have been basically drafted and will be reported to the Ministry of Commerce in the near future.

Yu Xiaomei summed up four advantages for second-hand equipment circulation technology standards: first, it is beneficial to users. "A scientific and complete assessment of used equipment is based on standards, so that the user really knows the value of the equipment to be purchased, which is conducive to the maintenance of the legitimate rights and interests of both parties." Second, it is beneficial for equipment manufacturers to conduct business. When assisting enterprises in developing second-hand equipment business, standard formulation and operation management of equipment repurchasing, refurbishment, maintenance, re-sale, and other industrial chains can not only promote the sales of new equipment, but also drive the development of after-sales services and parts and components markets. Enable the company to gain overall revenue. Third, it is conducive to maintaining the market's circulation order. From the company’s production and sales, to the entire industrial chain of large and complex used equipment, the future competition is the competition of the industrial chain. "Therefore, it is necessary to establish a standardized market for used equipment, and its foundation is the establishment of a standard system for the circulation of used equipment," Yu Xiaomei once again stressed.

Establishing a Sound Trading System From a worldwide perspective, Japan's second-hand equipment trading operation system is very mature. According to industry insiders, China needs to learn from Japan's rules and regulations and operating experience.

Sun Ling, head of the business division and product distribution department of Hitachi Construction Machinery (Shanghai) Co., Ltd., said that Japan's second-hand equipment market has a completely different structure from that of China.

Take Japan's second-hand excavator market as an example. In the case of annual circulation, 35% of the shares are collected by manufacturers and dealers, and 60% are recycled by marketers of second-hand mobile phones. The marketers of the second mobile phone are in fact manufacturers and directly-operated trading companies. Therefore, in this sense, the majority of Japan’s (approx. 95%) share of used equipment transactions is borne by manufacturers. In China, domestic manufacturers rarely participate in the recycling and sales of used equipment.

In order to ensure the normal circulation of second-hand equipment, Japan has three major guarantee systems that have accumulated for many years and have been perfected. First, under the joint advancement of the Japanese government and the Japan Construction Machinery Association, quite mature and stable policies and regulations have been formulated. The Japan Construction Machinery Association was jointly established by 74 major manufacturers. The sales of its member units accounted for 97% of the total sales of construction machinery in Japan. Japan has a fair and equitable assessment mechanism for used equipment transactions. All construction machinery products have corresponding evaluation standards, and the standard price of equipment will be reflected in the evaluation table.

Second, an information platform for a second mobile phone was established. All the second mobile phones circulated on the Japanese market can be found on this platform. At the same time, the Association will periodically re-evaluate the prices of the two mobile phones according to the latest market conditions.

Third, there is an emerging profession in Japan - used equipment appraisers. The Japan Construction Machinery Association regularly organizes special examinations to grant qualifications for assessors.

According to industry sources, China has a lot to improve in comparison with the status of used equipment in Japan. Yu Xiaomei said that only a well-established second-hand equipment circulation standard system can be implemented in related supporting policies. Therefore, she suggested that companies in the industry should actively cooperate and play a joint advantage to take into account and safeguard the legitimate rights and interests of enterprises.