At a digital products shopping mall in Chaoyang District, Beijing, many consumers have been inquiring about "trade-in" promotional activities for cellphones. Li Hang, a staff member at the store, informed People's Daily newspaper that in April, more than 50 percent of customers purchased new cellphones through the "exchanging old phones for new ones" initiative. Li explained that consumers can receive discounts ranging from several hundred to several thousand yuan (or several tens to hundreds of U.S. dollars) based on the condition of their old phones.

"The trade-in initiative has really boosted consumer enthusiasm for buying new phones," Li said.

Meanwhile, on JD.com, one of China's largest e-commerce platforms, consumers can also trade in their old phones for new ones. The platform assesses the value of the old phone, which is collected upon delivery of the new one.

According to a report released by JD Group, the broader corporate entity overseeing JD.com and its subsidiaries and business operations, and the China Ecological Civilization Research and Promotion Association in March, there is a growing trend among consumers of exchanging old electronic products such as cellphones and computers for new ones. This trend has shortened the product replacement cycle, increased sales of electronic products and prompted brands to accelerate innovation efforts.

In recent years, the Central Government has been actively promoting the replacement of old household appliances, including cellphones, with new ones. This emphasis was reiterated earlier this year.

In March, the State Council, China's highest state administrative organ, unveiled an action plan to encourage large-scale equipment upgrades and trade-ins of consumer goods.

The plan advocates fine-tuning trade-in programs for consumer goods such as vehicles, home appliances and home decor items.

It further underscores the improvement of recycling networks for waste and used products, as well as the circulation of second-hand goods.

"The recycling of used phones can help stimulate cellphone consumption," Hong Yong, an associate researcher at the Chinese Academy of International Trade and Economic Cooperation, told People's Daily. He said promoting the recycling of old cellphones and expanding trade-in services can unleash more effective demand and encourage cellphone brands to accelerate innovation.  

"Old cellphones are treasures when recycled properly, but improper handling can lead to waste and pollution," Liu Jianguo, Director of the Research Institute of Solid Waste Control and Resource Reuse at Tsinghua University's School of Environment, told People's Daily.

Used phones contain an assortment of high-value non-ferrous metals such as platinum, gold, silver, copper and tin.

Guo Zhanqiang, Secretary General of the China Association of Circular Economy, told China Comment magazine that up to 200 grams of gold can be extracted from a ton of used cellphones. In addition, extracting gold from cellphone circuit boards costs 20 percent to 65 percent less than from traditional gold mines. Moreover, elemental silicon from cellphone chips can be purified and repurposed to produce monocrystalline silicon for semiconductor components.

Yu Keli, Secretary General of the China National Resources Recycling Association, told People's Daily that metallic materials make up 30 percent to 40 percent of a cellphone's total mass, and plastics constitute 40 percent to 50 percent, with the remainder being materials like glass and ceramics.

Yu further said managing used cellphones properly brings both economic and social benefits.

He outlined three current methods for recycling them: Phones in good condition are repaired and refurbished for resale in the second-hand market; seriously damaged ones are dismantled, with their electronic components used for repairs; and those with unusable parts are disassembled to extract renewable materials and rare precious metals.

Standardization 

However, the recycling rate of phones remains low in China. According to the China Association of Circular Economy, the average lifespan of a cellphone is around 2.2 years, and more than half of used phones are left unused by consumers. Data from the China National Resources Recycling Association show that out of the 600 million to 700 million used phones generated annually in China, only 200 million to 300 million are recycled.

Consumers hesitate to recycle old phones due to low buyback prices and concerns about personal data security.

In Qingxiu District of Nanning City, Guangxi Zhuang Autonomous Region, several stores claim to offer high prices for buying used cellphones. A China Comment reporter brought a domestic brand cellphone, originally purchased for over 3,000 yuan ($412.9) a few years ago, to two stores and was offered just 10 to 15 yuan ($1.4 to 2.1).

Many consumers worry that despite formatting or resetting their phones, some personal data such as chat records and payment history may still remain. "Currently, there is no standard for ensuring the complete data wipe-out for old and discarded phones," Guo said.

Guo underlined that the recycling of used phones is a new industry in China and there is a lack of uniform criteria for assessing and grading second-hand phones.

Consequently, the pricing of the same phone can vary across different recycling channels due to the absence of uniform national standards.

"At present, there are no specific regulations governing the management of the cellphone recycling market. It is necessary to strengthen government oversight and introduce corresponding technical specifications and industry standards for evaluating, securely erasing information, disassembling, reusing components and extracting rare and precious metals involved in the recycling process. The entire process of cellphone recycling should be regulated." Yu suggested.

Inadequate recycling networks also impede cellphone recycling efforts. Wang Yunli, Vice Chairman of China Recycling Resource Group, told People's Daily that collection points for old phones are primarily concentrated in large cities, with fewer such networks available in smaller cities.

Experts advocate the implementation of the Extended Producer Responsibility (EPR) system. "Under the EPR system, a producer's responsibility for a product extends throughout its lifecycle, especially in post-consumption recycling, treatment, and reuse stages," Liu said. He added that cellphone producers should be included in the development of recycling systems.

The government should set recycling targets and encourage cellphone brands to leverage existing sales and maintenance channels or collaborate with professional third parties to establish recycling networks.

(Print Edition Title: New Life for Old Phones) 

Copyedited by Elsbeth van Paridon 

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