STUMBLING BLOCK

Recycling companies are not blind to the economic potential of recycling small electronics, but they complain that the business is not cost-effective without government subsidies.

Since July 2012, the government has begun to collect funds from manufacturers and importers of TV sets, refrigerators, washing machines, air conditioners and computers to subsidize licensed recycling companies. However, disposal of small electronic items is not included in the subsidy program.

"In terms of small gadgets, without government support we can't compete with the unlicensed waste collectors. They use primitive but low-cost dismantling and disposal methods," said a manager with Shandong Zhonglv Eco-Recycle C0. Ltd., based in Shandong's Linyi City.

The investment and operation costs for qualified recyclers are too high to be covered by yields if they cannot collect enough small gadgets, Xu said.

In China, waste electronic goods collection has grown into a full-fledged underground economy.

Small businesses that lack sophisticated infrastructure and expertise strip down the goods to recover components for second-hand equipment or to harvest valuable metals and raw materials.

They often soak circuit boards, a major polluter, in strong acid that can contaminate the air and water, said the manager, requesting anonymity.

"From my observation, many peddlers just dump the leftovers after salvaging useful parts," said Wang Kun, who works at a large technology store in Jinan.

SOLUTIONS

Recyclers' calls for government support of small electronics disposal have been heard, as the National Development and Reform Commission is considering adding cell phones, batteries, printers, copiers, scanners and fluorescent lamps to the government subsidy program for recycling and safe disposal.

The draft proposal was made public in December 2013 by the commission to solicit opinions for one month.

In addition to motivating licensed recycling companies with funds, Xu suggested retailers offer "old-for-new" services to stimulate recovery of small electronic goods.

Consumers could also help with better recycling, said Zhang Ning, a Chinese-Australian who makes regular business trips to Jinan every year.

"In China, you can hardly find a formal channel to hand in redundant electronic items," she said, suggesting the government place bins exclusively for disposal of small gadgets, as has been done in some developed countries such as Australia and Germany.