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5 White Paper on the Business Environment in China
China Recycling Development Co., the largest resource Enforcement of the new policy, dubbed “Operation Green
recycling company in the country, reached agreement on Fence,” reportedly led to the rejection of “800,000 tons of
the construction of the Southwest Recycling base, and on recyclables or scrap” in its rst seven months. During that
November 14 they signed a contract calling for an initial time, “customs o cials [conducted] rigorous checks have
investment of 3.4 billion yuan to develop a recycling park suspended the import licenses of 247 companies.”46
spanning 3.3 square kilometers to function as the core
facility for the recycling base. e base is a colossal project e revocation of those licenses is expected to “force
that will make it the largest recycling center in the southwest, smaller out ts out of business, making environmental
comprising a market covering some 53.3 km2 and another regulation easier for the government.”46
area for the deep processing of recycled resources covering
26.7 km2. e core recycling park is being built in three Whereas “China’s demand for low-cost recycled raw
phases over ve years and is scheduled for completion in materials has meant waste shipments from Europe, the US,
2015. e rst phase focused on an area covering 53 hectares Japan and Hong Kong arrived thick and fast, with scrap
and investment of 912 million yuan to develop facilities for becoming the top US export to China by value ($11.3bn) in
retrieving and sorting scrap materials, trading, processing, 2011,”46 the new policy appears to have motivated American
distribution and shipping, anti-pollution measures, waste and European industry players to explore more extensive
management training, scienti c and technological research recycling operations on their home turfs. As a result, say some
and development, and public services. Phase two involved the executives, China may have sparked a new wave of innovation
construction of a 26.5 ha deep processing area at a cost of 515 in the industry47
million yuan. And phase three, covering 253 ha and costing
2 billion yuan, will expand the park’s resource-retrieval and
deep-processing capabilities.”
China Recycling Development, China’s top recycling
company, was founded with State Council backing in
May 1989. In addition to Neijiang, the report says,
the company “has bases all over the country, including
Qingyuan, Guangdong Province; Luoyang, Henan Province;
Changzhou, Jiangsu Province; Linyi, Shandong Province;
Lingwu, Yinchuan in the Ningxia Hui Autonomous Region;
Tangshan, Hebei Province; Xian, Shaanxi Province; and
facilities in Heilongjiang and Jiangxi Provinces.”
e report points out that recycling permits in China
are di cult to obtain, issued only in limited numbers on a
provincial basis, which accounts for the pseudo-monopoly of
CRD and fragmentation of smaller players. at CRD has
national coverage, says the report, “is proof that it has full
state approval.”
According to the report, “Neijiang no doubt hoped
to formalize the sector by inviting one of China’s leading
companies to the city. Plans call for the recycling park in
Niupengzi to recycle 1.85 million tons of resources a year
from 2 million electrical and electronic devices and 50,000
scrapped automobiles. is, it is hoped, should generate sales
of 10 billion yuan and pro ts of 200 million yuan, creating
1.9 billion yuan in tax revenue and jobs for 20,000 people.”
China’s “Green Fence”
China “sent shock waves through the global recycling
market [in February 2013] when it announced it would
no longer be accepting poorly sorted or dirty shipments of
recyclable waste from foreign exporters.”46
168
China Recycling Development Co., the largest resource Enforcement of the new policy, dubbed “Operation Green
recycling company in the country, reached agreement on Fence,” reportedly led to the rejection of “800,000 tons of
the construction of the Southwest Recycling base, and on recyclables or scrap” in its rst seven months. During that
November 14 they signed a contract calling for an initial time, “customs o cials [conducted] rigorous checks have
investment of 3.4 billion yuan to develop a recycling park suspended the import licenses of 247 companies.”46
spanning 3.3 square kilometers to function as the core
facility for the recycling base. e base is a colossal project e revocation of those licenses is expected to “force
that will make it the largest recycling center in the southwest, smaller out ts out of business, making environmental
comprising a market covering some 53.3 km2 and another regulation easier for the government.”46
area for the deep processing of recycled resources covering
26.7 km2. e core recycling park is being built in three Whereas “China’s demand for low-cost recycled raw
phases over ve years and is scheduled for completion in materials has meant waste shipments from Europe, the US,
2015. e rst phase focused on an area covering 53 hectares Japan and Hong Kong arrived thick and fast, with scrap
and investment of 912 million yuan to develop facilities for becoming the top US export to China by value ($11.3bn) in
retrieving and sorting scrap materials, trading, processing, 2011,”46 the new policy appears to have motivated American
distribution and shipping, anti-pollution measures, waste and European industry players to explore more extensive
management training, scienti c and technological research recycling operations on their home turfs. As a result, say some
and development, and public services. Phase two involved the executives, China may have sparked a new wave of innovation
construction of a 26.5 ha deep processing area at a cost of 515 in the industry47
million yuan. And phase three, covering 253 ha and costing
2 billion yuan, will expand the park’s resource-retrieval and
deep-processing capabilities.”
China Recycling Development, China’s top recycling
company, was founded with State Council backing in
May 1989. In addition to Neijiang, the report says,
the company “has bases all over the country, including
Qingyuan, Guangdong Province; Luoyang, Henan Province;
Changzhou, Jiangsu Province; Linyi, Shandong Province;
Lingwu, Yinchuan in the Ningxia Hui Autonomous Region;
Tangshan, Hebei Province; Xian, Shaanxi Province; and
facilities in Heilongjiang and Jiangxi Provinces.”
e report points out that recycling permits in China
are di cult to obtain, issued only in limited numbers on a
provincial basis, which accounts for the pseudo-monopoly of
CRD and fragmentation of smaller players. at CRD has
national coverage, says the report, “is proof that it has full
state approval.”
According to the report, “Neijiang no doubt hoped
to formalize the sector by inviting one of China’s leading
companies to the city. Plans call for the recycling park in
Niupengzi to recycle 1.85 million tons of resources a year
from 2 million electrical and electronic devices and 50,000
scrapped automobiles. is, it is hoped, should generate sales
of 10 billion yuan and pro ts of 200 million yuan, creating
1.9 billion yuan in tax revenue and jobs for 20,000 people.”
China’s “Green Fence”
China “sent shock waves through the global recycling
market [in February 2013] when it announced it would
no longer be accepting poorly sorted or dirty shipments of
recyclable waste from foreign exporters.”46
168
