China Creates New State Giant to Turn Waste Into Resources

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The State Council set a target to create a comprehensive waste recycling system by 2025, with the resource recycling industry’s annual output valued at 5 trillion yuan

China is to establish a state-owned enterprise focused on recycling, as the country promotes upgrades to industrial equipment and consumer good trade-ins to boost the economy.

A senior official at the National Development and Reform Commission (NDRC), China’s top economic planning agency, said Monday that the commission “supports the establishment of a national resources recycling group to create a functional resource recovery and utilization platform,” the first official statement on the new state enterprise.

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China is establishing a state-owned China Resource Recycling Group in Tianjin to boost resource recycling.
The new group will consolidate recycling businesses from state firms like China Baowu, Chinalco, and Sinopec.
In 2023, China produced 17.7 million tons of recycled non-ferrous metals, including 3.95 million tons of recycled copper and 9.5 million tons of recycled aluminum.

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Who’s Who

China Baowu Steel Group Corp. Ltd.: China Baowu Steel Group Corp. Ltd. operates its recycling business primarily through its subsidiary, Ouyeel Chain Gold Renewable Resources Co. Ltd. Established in 2020, Ouyeel engages in metal recycling, car and ship dismantling, and steel handling. It was valued at over 10 billion yuan after a 2022 funding round and earned more than 112 billion yuan in revenue in 2022, holding a market share exceeding 20%.

Aluminum Corp. of China Ltd. (Chinalco): Aluminum Corp. of China Ltd. (Chinalco) operates waste metal recycling through its Shanghai listed arm Chalco and its copper mining unit China Copper Co. Ltd. It is one of the centrally owned state firms contributing its recycled aluminum and waste copper operations to the new China Resource Recycling Group.

Sinopec Group: Sinopec Group is actively involved in developing waste plastic recycling projects. It is one of the state-owned enterprises contributing to the establishment of the new China Resource Recycling Group, under the central government's oversight, which will integrate recycling businesses from various firms including Sinopec’s waste plastic recycling operations.

Ouyeel Chain Gold Renewable Resources Co. Ltd.: Ouyeel Chain Gold Renewable Resources Co. Ltd., a wholly owned subsidiary of China Baowu Steel Group Corp. Ltd., focuses on recycling and processing metal resources, dismantling cars and ships, and managing recycled steel. Established in 2020, the company's 2022 valuation exceeded 10 billion yuan, with revenue surpassing 112 billion yuan and a market share of over 20%.

China Copper Co. Ltd.: China Copper Co. Ltd. is a unit under Chinalco involved in waste metal recycling activities. Its operations include recycling and processing various waste metals, contributing to the broader recycling efforts outlined by the NDRC and the newly established China Resource Recycling Group.

Chalco: Chalco, the Shanghai-listed arm of Chinalco, is involved in the company's waste metal recycling businesses. These operations are part of a broader effort by Chinalco to integrate recycling processes within its enterprise, contributing to China's goals of enhancing resource recycling and developing a circular economy.

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What Happened When

2020：: Ouyeel Chain Gold Renewable Resources Co. Ltd., a wholly owned subsidiary of China Baowu, was established.

2022：: Ouyeel was valued at more than 10 billion yuan after a funding round and had revenue exceeding 112 billion yuan.

February 2024：: The State Council set a target to create a comprehensive waste recycling system by 2025, with the resource recycling industry’s annual output valued at 5 trillion yuan.

May 2024：: An action plan emphasized the importance of recycling waste steel and promoting the circular use of outdated products.

July 2024：: A policy document set the goal of developing a circular economy with key objectives including achieving an annual utilization of nearly 4.5 billion tons of major solid waste by 2030, and establishing a green, low-carbon circular economy by 2035.

September 23, 2024：: A senior NDRC official stated that the commission supports the establishment of a national resources recycling group to create a functional resource recovery and utilization platform.

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