China Forms New State-Owned Enterprise Focused on Resource Recycling Under Central Administration
China has launched a new centrally administered state-owned enterprise (SOE) focused on resource recycling. This initiative underscores the country's commitment to sustainability and efficient resource management. The establishment of this SOE aims to enhance recycling efforts and support environmental conservation initiatives throughout the nation.
TroibNews 
China Resources Recycling Group Co., Ltd., a state-owned enterprise under central administration, was officially inaugurated at a ceremony in Tianjin on Friday.
This newly formed organization will focus on resource recycling and reuse, taking on the crucial role of establishing a national platform dedicated to these efforts.
With a registered capital of 10 billion yuan, the enterprise is backed by the State-owned Assets Supervision and Administration Commission of the State Council, which acts on behalf of the State Council to fulfill investment responsibilities.
In terms of equity distribution, the State-owned Assets Supervision and Administration Commission of the State Council, China Baowu Steel Group Corporation Limited, China Petrochemical Corporation, and China Resources Co., Ltd. each own 20 percent, while Aluminum Corporation of China and China Minmetals Corporation hold 10 percent each.
Liu Yu, chairman of China Resources Recycling Group Co., Ltd., noted that the company aims to become a comprehensive solution provider that encompasses various key categories of recycled resources. This will include integrating functions such as warehousing, processing, distribution, trade-in, and standard-setting.
Simultaneously, the company plans to establish multiple specialized subsidiaries, focusing on building offline resource recycling networks, scrap steel recycling, the recycling of durable consumer goods like electronics, trade-in initiatives, and the recycling of used batteries from new-energy vehicles and electric bicycles. Additionally, it will work on recycling decommissioned wind power and photovoltaic equipment, as well as scrap non-ferrous metals and waste plastics.
Zhou Mi, a senior research fellow at the Chinese Academy of International Trade and Economic Cooperation, informed CN that China has a vast consumer market where many products purchased in the past have reached the end of their lifecycle and need replacement. Concurrently, there are efforts to promote large-scale equipment renewal. This year’s initiatives involving major equipment and consumer goods trade-ins have led to a build-up of recycled products that require destitution. The formation of this new group addresses these market needs and contributes to alleviating recycling bottlenecks while lessening environmental burdens, showcasing a responsible approach from China.
Zhou further elaborated that these shareholder enterprises possess extensive experience and supply networks in resource extraction, which will enhance collaboration in forging an efficient resource recovery industry chain, mitigating environmental impacts and fostering green development.
"Chinese companies are already focusing on the power battery recycling business, and this new enterprise will play a complementary role because the new enterprise's business scope is not limited to battery recycling," Zhou said. "I hope that these companies can cooperate with each other to form a healthy competition and accumulate successful experiences for China's green development, which can be shared with the world in the future to improve the global efficiency of resource recycling."
Jin Tianlin, an associate research fellow at the Academy of Macroeconomic Research, highlighted that the establishment of China Resources Recycling Group represents a pivotal step toward promoting the overarching green transformation of economic and social developmental strategies. It's seen as an innovative effort to enhance the efficient recycling of resources and as a robust initiative aimed at optimizing the allocation of state-owned capital to better guide the high-quality development of green and low-carbon industries.
According to Jin, regarding shareholders and business structure, the formation of China Resources Recycling Group is expected to bolster China's resource recycling system, enhance the recovery and recycling levels of new and solid waste resources, encourage multi-industry resource integration, and bear milestone significance for the high-quality progression of China’s green low-carbon recycling industry.
The State Council released an action plan on March 13 to spur large-scale equipment renewals and trade-ins of consumer goods.
As outlined in the plan, China aims to establish a trade-in mechanism that facilitates the disposal of used goods in return for smart, green, and low-carbon alternatives.
The program has already demonstrated positive effects, such as stimulating investment, boosting consumption, driving industrial growth, enhancing people's well-being, and benefiting the environment.
Ramin Sohrabi contributed to this report for TROIB News
This newly formed organization will focus on resource recycling and reuse, taking on the crucial role of establishing a national platform dedicated to these efforts.
With a registered capital of 10 billion yuan, the enterprise is backed by the State-owned Assets Supervision and Administration Commission of the State Council, which acts on behalf of the State Council to fulfill investment responsibilities.
In terms of equity distribution, the State-owned Assets Supervision and Administration Commission of the State Council, China Baowu Steel Group Corporation Limited, China Petrochemical Corporation, and China Resources Co., Ltd. each own 20 percent, while Aluminum Corporation of China and China Minmetals Corporation hold 10 percent each.
Liu Yu, chairman of China Resources Recycling Group Co., Ltd., noted that the company aims to become a comprehensive solution provider that encompasses various key categories of recycled resources. This will include integrating functions such as warehousing, processing, distribution, trade-in, and standard-setting.
Simultaneously, the company plans to establish multiple specialized subsidiaries, focusing on building offline resource recycling networks, scrap steel recycling, the recycling of durable consumer goods like electronics, trade-in initiatives, and the recycling of used batteries from new-energy vehicles and electric bicycles. Additionally, it will work on recycling decommissioned wind power and photovoltaic equipment, as well as scrap non-ferrous metals and waste plastics.
Zhou Mi, a senior research fellow at the Chinese Academy of International Trade and Economic Cooperation, informed CN that China has a vast consumer market where many products purchased in the past have reached the end of their lifecycle and need replacement. Concurrently, there are efforts to promote large-scale equipment renewal. This year’s initiatives involving major equipment and consumer goods trade-ins have led to a build-up of recycled products that require destitution. The formation of this new group addresses these market needs and contributes to alleviating recycling bottlenecks while lessening environmental burdens, showcasing a responsible approach from China.
Zhou further elaborated that these shareholder enterprises possess extensive experience and supply networks in resource extraction, which will enhance collaboration in forging an efficient resource recovery industry chain, mitigating environmental impacts and fostering green development.
"Chinese companies are already focusing on the power battery recycling business, and this new enterprise will play a complementary role because the new enterprise's business scope is not limited to battery recycling," Zhou said. "I hope that these companies can cooperate with each other to form a healthy competition and accumulate successful experiences for China's green development, which can be shared with the world in the future to improve the global efficiency of resource recycling."
Jin Tianlin, an associate research fellow at the Academy of Macroeconomic Research, highlighted that the establishment of China Resources Recycling Group represents a pivotal step toward promoting the overarching green transformation of economic and social developmental strategies. It's seen as an innovative effort to enhance the efficient recycling of resources and as a robust initiative aimed at optimizing the allocation of state-owned capital to better guide the high-quality development of green and low-carbon industries.
According to Jin, regarding shareholders and business structure, the formation of China Resources Recycling Group is expected to bolster China's resource recycling system, enhance the recovery and recycling levels of new and solid waste resources, encourage multi-industry resource integration, and bear milestone significance for the high-quality progression of China’s green low-carbon recycling industry.
The State Council released an action plan on March 13 to spur large-scale equipment renewals and trade-ins of consumer goods.
As outlined in the plan, China aims to establish a trade-in mechanism that facilitates the disposal of used goods in return for smart, green, and low-carbon alternatives.
The program has already demonstrated positive effects, such as stimulating investment, boosting consumption, driving industrial growth, enhancing people's well-being, and benefiting the environment.
Ramin Sohrabi contributed to this report for TROIB News
