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Key issues for companies entering the Chinese WEEE recycling industry

Björkegren, Erik and Göransson, Jonathan LU (2011) FEKP02 20111
Department of Business Administration
Abstract (Swedish)
Problem: The Chinese WEEE recycling market is today operated mostly by the informal sector. As this sector eludes the insufficiently enforced environmental laws the e-waste is recycled by means not only harmful to the environment and people working with the recycling process, but it also utilizes methods that do not recover valuable materials in a sound and efficient way. Many companies stand ready to enter the market but the marketplace in China is quite complex and hard to grasp.

Purpose: This thesis aims to facilitate strategic decision making for foreign companies entering the Chinese WEEE recycling industry. The result will explain the current market situation from a macro and micro environment point of view. Key issues facing the... (More)
Problem: The Chinese WEEE recycling market is today operated mostly by the informal sector. As this sector eludes the insufficiently enforced environmental laws the e-waste is recycled by means not only harmful to the environment and people working with the recycling process, but it also utilizes methods that do not recover valuable materials in a sound and efficient way. Many companies stand ready to enter the market but the marketplace in China is quite complex and hard to grasp.

Purpose: This thesis aims to facilitate strategic decision making for foreign companies entering the Chinese WEEE recycling industry. The result will explain the current market situation from a macro and micro environment point of view. Key issues facing the formal sector and new investors will then be described and discussed.
Methodology: An initial in-depth study of the industry was performed, followed by literature reviews of studies covering similar topics. Interviews with corporate and government officials were conducted in China in order to get as close as possible to the source of information. Both authors spent four weeks in Chine performing data collection. The interviews were coupled with field studies in order to secure information and to get deeper knowledge and understanding.
Key issues for companies entering the Chinese WEEE recycling industry
4

Conclusions: As the second largest producer in the world of WEEE and with an underdeveloped WEEE recycling industry the Chinese market might seem extremely interesting for foreign investors to invest in. However there are some concerning issues facing both international as well as domestic companies. The primary being the one of access to input e-waste as a large and well organized informal sector is gaining competitive advantage by not playing by the rules thus collecting the majority of the e-waste available on the market. Today, this market has a major potential but needs further development why timing the market becomes the main priority. The authors argue that in five to ten years the market might be comparable to western countries but this should be concluded by future studies. (Less)
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author
Björkegren, Erik and Göransson, Jonathan LU
supervisor
organization
course
FEKP02 20111
year
type
H2 - Master's Degree (Two Years)
subject
keywords
WEEE, e-waste, recycling, recycling chain, China, market entry, technology transfer, precious metals refining
language
English
id
1970067
date added to LUP
2011-05-31 09:38:15
date last changed
2011-05-31 09:38:15
@misc{1970067,
  abstract     = {Problem: The Chinese WEEE recycling market is today operated mostly by the informal sector. As this sector eludes the insufficiently enforced environmental laws the e-waste is recycled by means not only harmful to the environment and people working with the recycling process, but it also utilizes methods that do not recover valuable materials in a sound and efficient way. Many companies stand ready to enter the market but the marketplace in China is quite complex and hard to grasp.

Purpose: This thesis aims to facilitate strategic decision making for foreign companies entering the Chinese WEEE recycling industry. The result will explain the current market situation from a macro and micro environment point of view. Key issues facing the formal sector and new investors will then be described and discussed.
Methodology: An initial in-depth study of the industry was performed, followed by literature reviews of studies covering similar topics. Interviews with corporate and government officials were conducted in China in order to get as close as possible to the source of information. Both authors spent four weeks in Chine performing data collection. The interviews were coupled with field studies in order to secure information and to get deeper knowledge and understanding.
Key issues for companies entering the Chinese WEEE recycling industry
4

Conclusions: As the second largest producer in the world of WEEE and with an underdeveloped WEEE recycling industry the Chinese market might seem extremely interesting for foreign investors to invest in. However there are some concerning issues facing both international as well as domestic companies. The primary being the one of access to input e-waste as a large and well organized informal sector is gaining competitive advantage by not playing by the rules thus collecting the majority of the e-waste available on the market. Today, this market has a major potential but needs further development why timing the market becomes the main priority. The authors argue that in five to ten years the market might be comparable to western countries but this should be concluded by future studies.},
  author       = {Björkegren, Erik and Göransson, Jonathan},
  keyword      = {WEEE,e-waste,recycling,recycling chain,China,market entry,technology transfer,precious metals refining},
  language     = {eng},
  note         = {Student Paper},
  title        = {Key issues for companies entering the Chinese WEEE recycling industry},
  year         = {2011},
}