China Releases Action Plan for Promoting the Use of Recycled Materials

As part of China’s continued push toward a circular economy it has released the Action Plan for the Application and Promotion of Recycled Materials (再生材料应用推广行动方案). By promoting wider and more standardized use of recycled materials across key industrial sectors, the Chinese authorities aim to embed circularity more deeply into the country’s industrial system.

Strategic Policy Background

The Action Plan is closely aligned with China’s broader policy agenda on circular economy development, green transformation, and high-quality industrial growth. In recent years, Chinese policymakers have increasingly emphasized the need to reduce reliance on primary raw materials, improve resource efficiency, and mitigate environmental pressures associated with traditional production models.

Recycled materials are positioned as a strategic input that can simultaneously address multiple policy objectives. From a resource security perspective, greater use of recycled input helps reduce dependence on imported commodities. From an environmental standpoint, recycling lowers energy consumption and emissions compared with primary extraction and processing. From an industrial policy angle, it supports the upgrading of manufacturing processes and the development of new growth segments within the recycling industry.

Core Objectives and Quantitative Targets

The Action Plan includes clear quantitative targets for 2030, providing direction for both public and private actors. The policy aims to significantly expand the scale of recycling and reuse for major material categories, including scrap steel, waste paper, non-ferrous metals, and plastics.

By 2030, annual recycling volumes of scrap steel and waste paper are expected to reach new highs, while output of recycled non-ferrous metals and recycled plastics is projected to grow steadily. These targets are not framed as rigid mandates for individual firms, but rather as aggregate benchmarks that guide industrial planning, investment decisions, and local government implementation.

Beyond volume growth, the policy places strong emphasis on improving the quality, consistency, and reliability of recycled materials, recognizing that quality concerns have historically constrained their broader industrial application.

Strengthening Recycled Material Supply Capacity

One of the central pillars of the Action Plan is the enhancement of recycled material supply capacity. The policy calls for expanding and upgrading recycling infrastructure, including collection systems, sorting facilities, processing plants, and integrated recycling parks.

The authorities emphasize the importance of improving feedstock quality at the source, particularly through better waste sorting and classification. This approach is intended to reduce contamination, increase processing efficiency, and raise the overall quality of recycled outputs. The plan also encourages technological upgrading in recycling processes, including automation, digital tracking, and advanced material recovery techniques.

By addressing supply-side bottlenecks, policymakers aim to improve the competitiveness of recycled materials relative to primary raw materials and support their wider adoption across manufacturing sectors.

Expanding Industrial Application and Market Demand

On the demand side, the Action Plan prioritizes expanding the use of recycled materials in key downstream industries. Automotive manufacturing, electronics, textiles, packaging, and battery production are identified as strategic application areas where recycled inputs can be scaled more rapidly.

Rather than imposing uniform mandatory quotas, the policy relies on a combination of guidance, demonstration projects, and market-based incentives. Pilot programs are encouraged to showcase successful integration of recycled materials into industrial production, while leading enterprises are expected to play a demonstrative role in setting best practices.

This gradualist approach reflects China’s effort to balance policy ambition with industrial feasibility, allowing time for technological adaptation and quality assurance.

Standards, Certification, and Quality Governance

The policy calls for accelerated development of technical standards, testing methods, and certification systems for recycled materials. These mechanisms are designed to improve transparency, enhance trust among downstream users, and reduce perceived risks associated with recycled inputs.

The State Administration for Market Regulation (SAMR) is tasked with strengthening supervision over recycled material quality and enforcing compliance with relevant standards. At the same time, the policy encourages industry associations and standard-setting bodies to participate actively in developing sector-specific norms.

Over time, these measures are expected to narrow the performance gap between recycled and primary materials, facilitating broader acceptance in high-value manufacturing applications.

Role of Public Procurement and Policy Incentives

Public procurement is highlighted as an important policy lever for stimulating market demand. The Action Plan encourages eligible recycled material products to be incorporated into government procurement catalogs, where appropriate. This mechanism is intended to provide stable demand signals and support early-stage market development.

In addition, local governments are encouraged to explore complementary incentive mechanisms, such as fiscal support, demonstration funding, and preferential treatment for compliant enterprises. While the policy does not introduce new nationwide subsidy schemes, it provides a framework within which local authorities can design targeted support measures aligned with national objectives.

Implementation, Coordination, and Monitoring

Effective implementation is framed as a shared responsibility among central ministries, local governments, industry associations, and enterprises. The Action Plan emphasizes the need for coordination across administrative levels and policy domains, particularly in areas such as industrial planning, environmental regulation, and market supervision.

Progress monitoring and evaluation are to be carried out under the leadership of the NDRC, with periodic assessments of target achievement and policy effectiveness. This governance approach allows for policy adjustments in response to market developments and implementation challenges.

What This Means for Business

The Action Plan signals a clear medium-term policy direction toward greater use of recycled materials in China’s industrial system. Companies operating in resource-intensive sectors should anticipate rising expectations regarding recycled content, quality compliance, and supply-chain transparency.

At the same time, the policy creates opportunities for firms engaged in recycling technologies, material processing, certification services, and circular economy solutions. Early movers that invest in quality upgrading, standards compliance, and integration of recycled inputs may strengthen their competitive positioning as regulatory and market conditions evolve.

For multinational companies, the policy also has implications for ESG strategies, procurement practices, and alignment between China operations and global sustainability commitments. Understanding the trajectory of recycled material regulation in China will be increasingly important for long-term strategic planning.

Sources

• 关于印发〈再生材料应用推广行动方案〉的通知（发改环资〔2025〕1681号）
  National Development and Reform Commission, 23 December 2025
  https://www.ndrc.gov.cn/xxgk/zcfb/tz/202512/t20251231_1402965.html

• 国家发展改革委有关负责同志就《再生材料应用推广行动方案》答记者问
  https://www.ndrc.gov.cn/xxgk/jd/jd/202512/t20251231_1402972.html
• 大力推动再生材料利用 增强绿色发展新动能
  https://www.ndrc.gov.cn/xxgk/jd/jd/202512/t20251231_1402964.html
• 七部门印发《再生材料应用推广行动方案》
  https://paper.people.com.cn/zgnyb/pad/content/202601/05/content_30130696.html