China has officially launched a new centrally administered state-owned enterprise (SOE), the China Resources Recycling Group Co., Ltd., in Tianjin on Friday. The establishment of this enterprise marks a significant step in the nation’s efforts to build a comprehensive resource recycling and reuse platform.
The newly formed company, with a registered capital of 10 billion yuan ($1.4 billion), is tasked with undertaking the important mission of promoting resource recycling and reuse across the country. The State-owned Assets Supervision and Administration Commission (SASAC) of the State Council represents the State Council in fulfilling the responsibilities of the investor.
In terms of shareholding, SASAC, China Baowu Steel Group Corporation Limited, China Petrochemical Corporation (Sinopec), and China Resources (Holdings) Co., Ltd. each hold 20 percent of the equity, while Aluminum Corporation of China and China Minmetals Corporation each hold 10 percent.
Liu Yu, chairman of China Resources Recycling Group Co., Ltd., stated that the company aims to become a comprehensive solution provider covering multiple key categories of recycled resources. “We will integrate functions such as warehousing, processing, distribution, trade-in, and standard setting,” Liu said.
The company plans to establish multiple specialized subsidiaries, focusing on areas including the construction of offline resource recycling networks, scrap steel recycling, recycling of durable consumer goods such as electronic products, and trade-in services. It will also engage in recycling used batteries from new-energy vehicles and electric bicycles, decommissioned wind power and photovoltaic equipment, scrap non-ferrous metals, and the processing of waste plastics.
Zhou Mi, a senior research fellow at the Chinese Academy of International Trade and Economic Cooperation, highlighted the significance of this initiative. “China has a broad consumer market, and many products purchased by residents in the past have reached their end-of-life and need to be replaced,” Zhou told CGTN. “The establishment of this new group responds to the needs of the market and will help clear the recycling blockage and reduce the burden on the environment.”
Zhou added that the shareholder enterprises have rich experience and supply networks in resource extraction, which is conducive to creating an efficient resource recovery industry chain. “This collaboration can reduce the impact on the environment and promote green development,” he said.
“Chinese companies are already focusing on the power battery recycling business, and this new enterprise will play a complementary role because its business scope is not limited to battery recycling,” Zhou noted. “I hope that these companies can cooperate to form healthy competition and accumulate successful experiences for China’s green development, which can be shared with the world in the future to improve global resource recycling efficiency.”
Jin Tianlin, an associate research fellow at the Academy of Macroeconomic Research, echoed these sentiments. “The establishment of China Resources Recycling Group is an important initiative to promote the overall green transformation of economic and social development strategy,” Jin said. “It is expected to improve China’s resource recycling system and promote high-quality development of the green low-carbon recycling industry.”
Earlier this year, the State Council released an action plan to promote large-scale equipment renewals and trade-ins of consumer goods, aiming to establish a mechanism that facilitates the scrapping of used goods in exchange for smart, green, and low-carbon ones. The program has yielded positive impacts, stimulating investment, unleashing consumption, fueling industrial development, improving people’s well-being, and benefiting the environment.
The launch of China Resources Recycling Group Co., Ltd. signifies China’s commitment to sustainable development and environmental responsibility, aligning with global efforts to promote resource recycling and green industries.
Reference(s):
China establishes new centrally administered SOE on resource-recycling
cgtn.com
