On May 6, 2019, Premier Li Keqiang signed the Order of the State Council and promulgated the new Measures for the Administration of the Recycling of Scrapped Motor Vehicles, which will come into force as of June 1, 2019. The Party Central Committee and the State Council attach great importance to the recycling management of end-of-life motor vehicles. In order to meet the needs of developing the circular economy and strengthening the construction of the renewable resources industry, the "five assemblies" of end-of-life motor vehicles, including engines, steering gear, transmissions, front and rear axles, and frames, which are newly disassembled, can be sold to remanufacturing enterprises for recycling in accordance with relevant national regulations, This will play a positive role in promoting the construction of renewable resources industry and the development of renewable resources market.

With the growth of China's automobile production and sales, the number of scrapped vehicles has also increased year by year. It is estimated that by 2020, the market space of end-of-life vehicles in China is expected to exceed 100 billion yuan.

In 2018, China had 240 million cars. According to the international average of 4% to 6% of car scrapping, China has huge potential for car scrapping in the future. It will lay a good foundation for the development of the scrapped automobile disassembly business of Zaige Group.