China's appliances and electronics manufacturers have been ordered to pay a recycling fee on their products, according to new regulations that just took effect on Jan. 1.
In turn, recyclers of appliances and electronics waste will receive a subsidy for the recycling service.Leading appliances makers like Haier, TCL, and Changhong are building or expanding their recycling operations. Publicly listed recycler Shenzhen GEM High-tech Co. Ltd. is seeing a boost of its stock price, thanks to positive feedback from the investment community on the new policy.In addition to the recycling of e-waste and batteries, GEM also runs three wood plastic composite factories in Southeast China.Analysts said the recycling fee, unspecified by the government, will likely be passed onto consumers, considering the already thin margin of the appliances industry.The new policy also aims to tighten up imports of appliances and electronics waste and establish an accreditation system for recyclers.