The Chinese government established a new centrally administered state-owned enterprise (SOE) specialising in recycling and reuse in mid-October. Newly founded China Resources Recycling Group Co., Ltd. (CRRG) is based out of Tianjin and has a registered capital of 10 billion RMB (€1.3bn), according to state-run news agency Xinhua.
"It is understood that this newly established central enterprise will specialise in resource recycling and undertake the important task of building a national, functional resource recovery and reuse platform," reported Xinhua. The company is to become a comprehensive solution provider covering integrating functions such as warehousing, processing, distribution, trade-in, and standard formulation and output.
CRRG is to set up a number of specialised subsidiaries involved in recycling a wide range of waste streams: ferrous and non-ferrous scrap metal, waste plastics, durable consumer goods such as electronic equipment, batteries from electric vehicles and e-bicycles, and decommissioned wind power and photovoltaic equipment. This may also involve take-overs of "outstanding companies in the industry", according to Xinhua. The group is also to be involved in the trade-in business and in the establishment of offline resource recovery networks.
The Chinese State Council is to own 20 per cent of the business via the State-owned Assets Supervision and Administration Commission (SASAC). Baowu Steel Group Corporation Ltd, China Petroleum & Chemical Corporation, and China Resources (Holdings) Company Ltd, which are themselves also SOEs, will also each have holdings of 20 per cent. The state-owned enterprises Aluminum Corporation of China Limited and China Minmetals Corporation are each to have holdings of 10 per cent of the business.
CRRC to support "Two New" equipment upgrade programmes
In instructions issued to CRRG at its founding, the State Council Premier Li Qiang said that the company was to "build a world-class resource recycling and reuse industry group to contribute to ensuring national resource security and promoting high-quality economic and social development". Among the SOE's other tasks was the implementation of a new round of large-scale equipment renewal and consumer goods trade-in actions.
China is supporting large-scale equipment upgrades and consumer goods trade-ins through a series of substantial subsidy programmes, under its "Two New" initiative. The state has introduced scrappage schemes for a wide range of products running from industrial equipment, elevators and agricultural equipment to consumer goods in four categories: automobiles, home appliances, electric bicycles and kitchen and bathroom equipment.
Meant first and foremost to spur investment, industrial development and consumption, "Two New" is also intended to support China's green transformation. Using more energy-saving and low-carbon products after replacing older models will promote the comprehensive green transformation of economic and social development, according to Zhao Chenxin, deputy director of the National Development and Reform Commission.
At a press conference in late September, Mr Zhao described the work already being done under the "Two New" initiative and described measures planned for the future, which included the founding of the China Resource Recycling Group and the promotion of the establishment of a national and functional resource recycling platform.
"The continuous advancement of the Two New work will generate a large volume of waste materials in the future, and we need to deal with this problem through recycling and reuse," said Mr Zhao. "Smoothing the recycling and reuse chain can not only effectively solve problems such as environmental pollution, but also help us open up the 'second mine' of resources," he added.
