China establishes new centrally administered SOE for resource-recycling

China officially launched a centrally administered state-owned enterprise (SOE) in Tianjin on Friday, specializing in resources recycling and reuse.

The newly established enterprise, Resources Recycling Group Co., Ltd, will undertake the important task of building a national platform on recycling and reusing consumer durables such as scrapped motor vehicles, home appliances and electronic products, and major equipment products such as retired wind power and photovoltaic modules.

"China Resources Recycling Group will recycle waste steel, waste power batteries, waste plastics, and waste non-ferrous metals, which is conducive to improving the self-sufficiency of energy and minerals. Taking the utilization of plastic recycling as an example, it is estimated that about 43 million tons of waste plastics were incinerated or buried in China in 2023. If half of this amount can be recycled chemically, it is equivalent to developing an oil field with a capacity of more than 60 million tons, which is of great significance for ensuring national energy and mineral security," said Sinopec President Ma Yongsheng.

According to a guideline issued by the State Council, China will implement a comprehensive set of policies to establish an extensive waste recycling system encompassing all sectors and stages by 2025.

The resource recycling industry is projected to achieve an annual output value of five trillion yuan (about 704 billion U.S. dollars), with the recycling of municipal solid waste expected to reach four billion tons and the recycling of major renewable resources anticipated to reach 450 million tons. Additionally, the proportion of utilized household waste is expected to increase to about 60 percent.

By 2030, the recycling of municipal solid waste is predicted to reach 4.5 billion tons, while the recycling of key renewable resources is projected to reach 510 million tons, and the proportion of domestic household waste utilization is expected to rise to 65 percent.

Liu Yu, chairman of China Resources Recycling Group Co., Ltd, said that the company will be built into a comprehensive solution provider covering multiple key categories of recycled resources, integrating functions such as warehousing, processing, distribution, trade-in and standard setting.

"Implementing resource recycling is a key component and an important measure for promoting large-scale equipment renewal and the trade-in of consumer goods. These waste products and equipment contain valuable recyclable materials, including steel, nonferrous metals, precious metals, plastics, rubber, and other resources. Effective recycling of these materials is akin to opening a 'second mine', which can reduce the demand for primary resources and lessen the pressure of mineral resource exploitation on the natural environment. At the same time, it also creates a broad market space for the development of the renewable resources recycling industry," said Liu.

The registered capital of the newly founded enterprise is 10 billion yuan (1.4 billion U.S. dollars), with the State-owned Assets Supervision and Administration Commission of the State Council representing the State Council in fulfilling the responsibilities of the investor.

In terms of the equity structure, the State-owned Assets Supervision and Administration Commission of the State Council, China Baowu Steel Group Corporation Limited, China Petrochemical Corporation, and China Resources (Holdings) Co., Ltd. each hold 20 percent, while Aluminum Corporation of China and China Minmetals Corporation each hold 10 percent.

China establishes new centrally administered SOE for resource-recycling

China's push toward a greener future is once again in the spotlight at this year's annual political "two sessions", as lawmakers are reviewing a draft ecological environment code, a significant step toward establishing a comprehensive legal framework for ecological protection.

The draft code was submitted on March 5 to the ongoing fourth session of the 14th National People's Congress (NPC), China's top legislature, for deliberation.

Once adopted, it will become China's second formal statutory code, after the Civil Code, which was adopted in 2020.

The rule of law has been continuously strengthened to support the country's green progress. China already has more than 30 laws related to environmental protection, along with over 100 sets of administrative regulations and more than 1,000 sets of local rules.

The latest legislative move comes amid China's historic gains in ecological conservation over the past decade or so. Championing green development, the country has recorded the world's fastest growth in forest resources and afforestation, led globally in renewable energy development, and achieved one of the fastest national reductions in energy intensity worldwide.

The 1,242-article draft has five chapters, covering areas including pollution control, ecological protection, and green and low-carbon development.

Scholars involved in drafting the legislation say the code goes beyond broad legal principles. It is also designed to address environmental issues that affect people's daily lives.

"Electric vehicles are becoming very common in China. My family has one. We all think it environment-friendly. But have you ever thought about this question: how do we deal with the first generation of EV batteries after they expire a few years later? The same goes for wind turbine blades and solar panels," said Ding Lin, assistant professor of the Renmin University of China.

China's environmental progress has drawn global attention in recent years, from improving air quality to expanding renewable energy. Yet amid geopolitical tensions and economic uncertainty, some observers have questioned whether the country will maintain the same pace of green transition.

"Last year during the COP30, even some friends who are very familiar with China asked me whether China will continue its green development path. I told them we have gradually worked out new policies. We have a very clear direction and goal. In a world full of uncertainties, we are providing the most certainty," said Wang Yi, an NPC deputy from east China's Zhejiang Province and professor of the Chinese Academy of Sciences.

In a country pursuing modernization, taking the time to codify environmental laws sends a clear message: economic growth and environmental protection are not a trade-off to be managed, but a commitment to be upheld. For China, a beautiful environment is not a luxury for the future, it is a right for the present, and a responsibility to the next generation.

"This code reflects China's vision of harmonious coexistence between humanity and nature. It shows how development and environmental protection can move forward together," said Lyu Zhongmei, vice chair of the NPC Environmental Protection and Resources Conservation Committee.

China will accelerate the green transition across the board and cut carbon dioxide emissions per unit of the GDP by a total of 17 percent in the 2026-2030 period, according to a draft outline of the 15th Five-Year Plan (2026-30) for national economic and social development submitted to the NPC for deliberation on March 5.

Chinese lawmakers review draft ecological environment code in major green legislative push