China’s hazardous waste sector is at a critical juncture, with the impact of decades of rapid industrialisation, urbanisation, and the government’s ambitious sustainability goals. With 95,15 million tons generated in 2022, China is the world’s largest producer of hazardous waste, particularly of industrial waste. Hazardous waste is also a market valued at 358,8 billion CNY (approximately 45,7 billion EUR). This figure is projected to grow to 640 billion CNY (81,6 billion EUR) by 2028, driven by increasing demand for advanced waste management solutions, stricter environmental regulations, and initiatives like Waste-Free Cities.

The Waste-Free Cities initiative, launched in 2018, aims to address China’s staggering annual production of 10 billion tons of solid waste and a historic backlog of 60–70 billion tons. This programme targets source reduction, efficient recycling, and safe disposal. 113 pilot cities are already part of the programme, implementing advanced waste management strategies. China is also prioritising the construction of 20 regional hazardous waste disposal centres (7 comprehensive, 13 specialised) to address high-risk, technologically complex waste streams. The government is also investing in national and regional technology centres to drive R&D in waste detoxification, recycling, and smart supervision.

The sector is further bolstered by Public-Private Partnerships (PPP), with recent guidelines mandating private enterprise dominance in solid waste treatment projects. The sector holds opportunities for European SMEs with expertise in advanced technologies, such as AI-driven waste sorting, IoT-enabled monitoring systems, and high-efficiency incineration solutions. However, the challenges of a highly fragmented market (the top company holds just 2.2% market share) and stringent compliance standards underscore the need for strategic planning and partnership building.

On 21 March, the EU SME Centre and European Union Chamber of Commerce in China invite you to a workshop to gain insights into this complex sector with industry experts. This event will explore the current regulations shaping the sector, as well as potential opportunities for European SMEs.