March 24, 2008 - Three Chinese automakers and 11 car parts manufacturers have signed on to a government-sponsored recycling program that will harvest reusable materials from the more than three million vehicles scrapped in China each year, Xinhua reports.

The program is part of a larger government effort to achieve a more "circular" - or sustainable - economy. In 2005, China's State Council made the circular economy a key element in its plan to achieve specific energy conservation and pollution reduction goals by 2020.

As Chinese demand for new cars continues to skyrocket, the market for used auto parts is expected to jump from 700 million to 3.8 billion yuan (upward of $500 million) within just the next two years.