SHANGHAI, China: A leading Chinese automotive industry publication has walked back claims that regulators plan to ban the resale of cars within six months of their registration—a move that would have directly targeted the controversial "zero-mileage" used car market.

Auto Review, the official media outlet of the China Association of Automobile Manufacturers (CAAM), issued a correction after previously reporting that the Ministry of Industry and Information Technology (MIIT) was preparing to impose a six-month resale ban.

In a statement to Reuters, Auto Review acknowledged the article "contained inaccurate descriptions related to the MIIT and other relevant authorities concerning zero-mileage used cars." The outlet said those inaccuracies had been removed and corrected.

The updated version of the article now states that MIIT is working with other agencies to "regulate the zero-mileage used cars" and manage the issue at its source, without mentioning a specific timeline or resale ban.

Auto Review had also previously reported that the China Automobile Dealers Association had proposed a new code system for used car exports. That line was revised to say the group had proposed to "set up a relevant mechanism," again without further detail.

The article—originally posted on the publication's official WeChat account—retained parts of the original reporting, including mentions that automakers such as Chery and BYD are among those considering more vigorous enforcement against dealers who register vehicles before actual sales occur.

Zero-mileage used cars are a growing feature of China's intensely competitive auto market. The practice involves registering and insuring unsold new vehicles to inflate reported sales numbers. These lightly used vehicles are then resold at a discount, creating confusion in the market and distorting actual demand.

The tactic has flourished amid a prolonged price war and persistent overcapacity in China's auto sector, particularly in the electric vehicle segment. In response, signs of a potential government clampdown have emerged in recent weeks.

A Communist Party-affiliated newspaper sharply criticized the practice in June. China's State Council pledged last week to rein in what it called "irrational" competition in the domestic electric vehicle industry.

While the corrected article signals a more cautious regulatory approach than initially reported, industry watchers still see mounting pressure from Beijing to curb manipulative sales strategies and restore balance in the sector.