China Resources Recycling Group Co., Ltd., a centrally administered state-owned enterprise (SOE), was officially launched at a founding ceremony in Tianjin on Friday.

The newly established enterprise will specialize in resources recycling and reuse, undertaking the important task of building a national platform in this respect.

The registered capital of the enterprise is 10 billion yuan ($1.4 billion), with the State-owned Assets Supervision and Administration Commission of the State Council representing the State Council in fulfilling the responsibilities of the investor.

In terms of the equity structure, the State-owned Assets Supervision and Administration Commission of the State Council, China Baowu Steel Group Corporation Limited, China Petrochemical Corporation, and China Resources (Holdings) Co., Ltd. each hold 20 percent, while Aluminum Corporation of China and China Minmetals Corporation each hold 10 percent.

Liu Yu, chairman of China Resources Recycling Group Co., Ltd., said that the company will be built into a comprehensive solution provider covering multiple key categories of recycled resources, integrating functions such as warehousing, processing, distribution, trade-in and standard setting.

The company will also establish multiple specialized subsidiaries simultaneously, with their business scope including the construction of offline resource recycling networks, scrap steel recycling, the recycling of durable consumer goods such as electronic products, trade-in business, and recycling used batteries from new-energy vehicles and electric bicycles, recycling decommissioned wind power and photovoltaic equipment, and recycling scrap non-ferrous metals, as well as the recycling and processing of waste plastics.

Zhou Mi, a senior research fellow at the Chinese Academy of International Trade and Economic Cooperation, told CGTN that 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; at the same time, large-scale equipment renewals are also being actively promoted. This year's large-scale equipment renewals and trade-in program of consumer goods have resulted in the accumulation of a large number of recycled products that need to be disposed of. The establishment of this new group responds to the needs of the market. At the same time, the establishment of the group will help clear the recycling blockage and reduce the burden on the environment, which is a responsible action on the part of China.

Zhou also said these shareholder enterprises have rich experience and supply networks in resource extraction, which is conducive to cooperation in creating an efficient resource recovery industry chain, reducing the impact on the environment and promoting the realization of green development.

"Chinese companies are already focusing on the power battery recycling business, and this new enterprise will play a complementary role because the new enterprise's business scope is not limited to battery recycling," Zhou said. "I hope that these companies can cooperate with each other to form a healthy competition and accumulate successful experiences for China's green development, which can be shared with the world in the future to improve the global efficiency of resource recycling."

Jin Tianlin, an associate research fellow at the Academy of Macroeconomic Research, said the establishment of China Resources Recycling Group is an important initiative to promote the overall green transformation of economic and social development strategy, an innovative initiative to promote the efficient recycling of resources, and a solid initiative to optimize the layout of state-owned capital to better lead the high-quality development of green and low-carbon industries.

Jin said, in terms of shareholders and business composition, the formation of China Resource Recycling Group is expected to improve China's resource recycling system, promote the level of recovery and recycling of new and solid waste resources, promote multi-industry resource integration, and have a milestone significance for the high-quality development of China's green low-carbon recycling industry.

The State Council released an action plan to promote large-scale equipment renewals and trade-ins of consumer goods, according to a circular issued on March 13.

China aims to establish a trade-in mechanism that facilitates the scrapping of used goods in exchange for smart, green and low-carbon ones, according to the plan.

The program has yielded positive impacts, such as stimulating investment, unleashing consumption, fueling industrial development, improving people's well-being and improving the environment.

(With input from Xinhua)