The recycling of waste electrical and electronic equipment (WEEE) is once again facing the awkward situation of "all talk and no action." An industry insider told a reporter from *China Enterprise News*, "One shoe dropped two years ago regarding the implementation of the regulations on the management of WEEE recycling, but the other shoe—the standards for recycling fees, subsidies, and payment methods for the first batch of five categories of products subject to mandatory recycling—has yet to be released. This will directly affect the progress of mandatory recycling of WEEE in China." Recently, *China Enterprise News* exclusively learned from the Waste Electrical and Electronic Equipment Working Committee of the China Resources Comprehensive Utilization Association that detailed information on the charging standards and methods for WEEE will be released as early as March this year. Currently, there are still significant uncertainties regarding specific product charging standards and subsidy methods, but it is a foregone conclusion that manufacturers will pay fees based on output, while recycling and dismantling companies will need to rely on substantial subsidies to maintain normal operations.
Fee Standards to be Announced as Early as March
Starting January 1st this year, the state officially implemented mandatory recycling for five types of products: color TVs, air conditioners, refrigerators, washing machines, and computers. According to relevant regulations and supporting measures previously issued by the State Council, the National Development and Reform Commission, and the Ministry of Environmental Protection, manufacturers of these five types of products will pay recycling and processing fees, and corresponding recycling and dismantling companies will receive subsidies, thereby comprehensively promoting the recycling and reuse of waste electrical and electronic products.
However, since the regulations officially took effect on January 1st, the relevant methods and measures for the "Waste Electrical and Electronic Equipment Processing Fund," drafted under the leadership of the Ministry of Finance, have yet to be publicly announced. This means that manufacturers and recycling/dismantling companies of the aforementioned products can only continue to wait, and related work cannot be implemented smoothly. Several executives from domestic home appliance companies, in interviews with *China Enterprise News*, stated, "We learned about the recycling of used home appliances from the media before, but our companies haven't received any relevant notices or documents yet. We're unclear about the specific payment standards and details, and are still following the original work procedures." In response, Tian Hui, Deputy Secretary-General of the Waste Electronic and Electrical Appliances Working Committee, told *China Enterprise News*, "Compared to the first draft of the recycling fund management regulations, the second draft has increased the fees for five categories of products. The fee for manufacturers is set between 10 and 20 yuan, while the subsidy for recycling and dismantling companies is between 70 and 100 yuan. At the same time, the 20% fee discount for 'enterprises producing green and environmentally friendly products' that appeared in the first draft has been removed." Tian Hui explained that the increased fees in the second draft were to promote the long-term sustainable implementation of the policy, increasing the collection amount for recycling fees. Air conditioners and washing machines have lower fees, while color TVs and computers have the highest fees. Regarding the principles governing the delayed implementation of the fund, Tian Hui revealed, "Currently, in order to stimulate domestic demand, the government is unwilling to increase the cost pressure on enterprises too much. However, for the future development of the dismantling and recycling industry, it is necessary to levy fees on manufacturing enterprises, which places a heavy burden on them and has caused policymakers considerable dilemma." Manufacturing Enterprises Benefit from Recycling The reporter also learned that the fund collection and management regulations, to be announced in March, will adopt a "multi-recycling model" for product recycling and dismantling, changing the previous "one-size-fits-all" approach of relying solely on professional third-party companies for recycling. Tian Hui revealed that the first draft stipulated that product dismantling and recycling would be uniformly handled by professional third-party companies, but the latest draft under discussion has clearly stated that "manufacturing enterprises are encouraged to participate in product recycling, dismantling, and reuse, and recycling fees will be waived for manufacturing enterprises that reach a certain recycling quantity standard." Industry insiders explain that discarded household appliances contain materials such as metals, plastics, and glass. For example, televisions contain 53% glass and 16% iron, copper, and aluminum. Refrigerators and washing machines have a usable value of over 50%. Computers and mobile phones also contain many precious and rare metals, and circuit boards contain gold, making this a profitable business opportunity. It is understood that companies like TCL and Changhong have already established specialized environmental recycling companies. TCL is even building a green environmental recycling industrial park in Tianjin, aiming to seize opportunities in this field. The *China Enterprise News* also learned from various sources that several air conditioning companies in Guangdong are actively preparing to establish professional recycling and dismantling companies, intending to gain a share of the product recycling market. However, reporters learned from dismantling and recycling companies in Beijing, Shandong, Jiangsu, and other places that professional dismantling and recycling companies that currently meet national environmental protection requirements are involved in third-party logistics and transportation, the training of professional personnel, and are also subject to market competition from "guerrilla waste recycling teams" scattered throughout the country. These companies have consistently operated at a loss and must rely on government subsidies to survive. Jiang Feng, Chairman of the China Household Electrical Appliances Association, believes that subsidizing recycling and dismantling companies based on their recycling volume is an internationally accepted practice. Currently, for domestic home appliance companies entering the waste recycling and dismantling field, it is not only for profit, but more importantly, to explore a sustainable development model that benefits both the industry and the companies in the current market environment. The pressure of recycling and dismantling is immense. Currently, the biggest challenge facing all domestic waste electrical and electronic product recycling and dismantling companies, besides the potential losses and lack of goods to dismantle in their daily operations, stems from a greater lack of technical experience and professional equipment. In June 2009, the State Council decided to launch a pilot program for "trade-in" home appliances in 10 cities, including Beijing and Changsha, and fully implemented it nationwide in June 2010. The program offered consumers a 10% sales subsidy for purchasing five types of home appliances to replace old ones. More than a year after its implementation, the biggest problem encountered was the delayed recycling of old appliances by many consumers, while many dismantling companies complained that they were receiving too many products, and their production lines couldn't keep up with the dismantling and recycling. This was due to two main issues: a lack of dedicated logistics and transportation systems for waste products, and a shortage of professional environmental dismantling personnel and equipment. Many companies faced significant challenges in processing and reusing the dismantled products. However, Tian Hui believes that the implementation of the trade-in policy is seen as a policy prelude to the implementation of the "Regulations on the Recycling of Waste Electrical and Electronic Equipment," aiming to establish a group of professional waste electrical and electronic equipment recycling and dismantling companies nationwide and find a "green and recyclable" operating system.
–Source: Xinhua News Agency
