(Yicai Global) March 27 -- Shandong Hiking International and Carchs Holdings, a Japanese used car dealer listed in Tokyo, have agreed to work together to import and export second-hand vehicles and auto parts.

The pair will set up a joint venture in Hiking International's hometown Qingdao to run operations, the Chinese firm, which mostly exports textiles and wigs, said in a statement. The companies have yet to determine how much they will inject into the new enterprise and how large a share each will take in it.

The statement did not go into detail of the joint venture's plans, but could be an indication that the company is following through on a January announcement that said it would invest CNY100 million (USD14.9 million) in a new company to export second-hand cars. It said at the time it would apply for a certificate from the Ministry of Commerce to sell used cars overseas via the subsidiary.

Most sales would be generated in Belt and Road countries, the January statement said, adding that used car exports would become a new profit maker for the company's international trade business.

The Belt and Road is China's 30- to 40-year plan for an infrastructure and trade route spanning roads, rails, pipes and waterways across most of the planet's continents. President Xi Jinping devised the program in 2013.

The latest statement did not disclose that the two announcements were linked, but said that the cooperation with Carchs will facilitate rapid implementation of its used car business, accelerate the creation of new inspection standards and help cultivate top talent.

Editor: James Boynton