Recycling of Electronics in China Reaches Significant Growth

The electronics waste recycling sector has made significant progress in this country, according to a report published by China Business News. The Chinese e-waste recycling industry has achieved success as a result of the e-waste policy introduced by the Chinese administration in 2011. However, the sector faces multiple challenges that hinder further expansion.

The report says that all electronics companies in China have a total processing capacity of up to 133 million electronic components per year. However, the facilities operate at just over 50 percent of their capacity, with a total of about 70 million electronic items recycling each year.

The government provided subsidies to 106 e-processing businesses from a state fund created in 2012 with a five-year plan. In its budget, the country allocated 2.81 billion yuan to the subsidy fund, which is $ 453 million. In addition, 629 million yuan ($ 101.2 million) was allocated to companies for various waste management subsidies in 2013.

Several e-waste recycling companies have shown a sudden upswing in their business. For example, Shenzhen Jem So, an electronic recycling company, generated gross profit of 311 million yuan ($ 50 million) in 2014. The company has formed strategic partnerships with various electronic waste collection centers across the country, which has led to an increase in e-waste purchases. The company also laid out plans to sell metal that can be reused to create new electronics products.

However, the electronics recycling sector still faces major challenges, according to industry experts. The average gross margin for e-waste recycling in the country is around 10 percent. At the same time, one of the main reasons for the low margin is 17% VAT on purchased scrap. However, despite all these difficulties, the Chinese electronics recycling industry continues to show significant proportions throughout 2014.