China's 3-Tier Tire Recycling System
Recently, the National Development and Reform Commission and the Ministry of Finance jointly issued the "Notice on Implementing the Large-Scale Equipment Renewal and Consumer Goods Trade-in Policy in 2026," in which the deployment of "unblocking the recycling network" has injected a strong boost into the tire recycling and remanufacturing industry.
Article 12 of the policy clearly proposes to improve the three-tiered recycling system of "recyclable resource collection points, transfer stations, and sorting centers." The construction of this standardized "logistics channel" is providing a systematic solution to the long-standing problem of waste tire collection that has plagued the industry.
As a major automobile producer and consumer, my country's waste tire production has been increasing year by year, exceeding 16.4 million tons in 2024. However, the recycling rate is only 50%, far below the global average of 74%, and the collection problem has long constrained the industry's development. Previously, the main players in the industry's recycling were individual merchants and small companies, accounting for over 90%, exhibiting characteristics of fragmentation and multiple layers.
Waste tires need to go through multiple intermediaries from sources such as auto repair shops and 4S stores to processing companies, which not only drives up recycling costs but also makes it difficult to control the quality of raw materials. Some legitimate companies even face the dilemma of "not having enough customers." Meanwhile, the decentralized recycling model has also given rise to problems such as illegal dismantling and excessive emissions, resulting in resource waste and exacerbating environmental pressure.
The three-tiered recycling system proposed in this policy precisely addresses the industry's pain points, constructing a standardized resource flow channel. At the front end, recycling resource collection points will be widely deployed in communities, villages, and areas with concentrated auto repair shops, leveraging the grassroots network advantages of the supply and marketing cooperative system to bridge the "last mile" of waste tire recycling and solve the shortcoming of traditional recycling models in reaching remote areas.
Mid-level transfer stations will undertake the functions of centralized temporary storage, preliminary sorting, and short-distance transfer, reducing intermediate circulation links and transportation losses through standardized management. Back-end sorting centers will achieve refined classification and processing, grading tires according to type, wear level, etc., providing precise raw materials for subsequent remanufacturing, pyrolysis, and other processing paths, improving resource utilization efficiency.
The policy's empowering effect extends beyond the recycling stage, forming a complete supply chain support system. The notice explicitly supports the China Resources Recycling Group in building a nationwide recycling and reuse platform, promoting the industry's transformation from a "small, scattered, and disorganized" model to a large-scale, standardized one.
Meanwhile, the injection of funds from ultra-long-term special treasury bonds provides financial security for the infrastructure construction of the three-tiered recycling system, and is expected to leverage active participation from social capital. The promotion of the "Internet + Recycling" model enhances residents' willingness to recycle through online appointments and door-to-door services, making the recycling process more efficient and traceable.
Under policy guidance, the tire recycling industry is experiencing a qualitative leap. A standardized recycling network will ensure a stable supply of raw materials and alleviate production pressure on enterprises; refined sorting will increase the added value of resources, driving the industry's transformation from extensive recycling to refined utilization.
More importantly, the improvement of the recycling system will create a virtuous cycle of "recycling-regeneration-application," providing a stable source of raw materials for remanufactured tires. Combined with policy requirements for the quality of remanufactured products, this will help eliminate consumer prejudice and expand the market space for remanufactured products.
The deployment of the recycling system in this large-scale equipment upgrade and consumer goods trade-in policy not only brings development opportunities to the tire recycling industry but also puts into practice the green development strategy. With the gradual implementation of the three-tiered recycling system, waste tires, once a source of "black pollution," will be truly transformed into a "green treasure," providing solid support for cultivating new green productivity and helping to achieve the goals of carbon peaking and carbon neutrality.
