With accelerating of urbanization, high-speed development of economy and society, continuous improvement of resident living standard, the amount of waste are increasing year after year. The healthy development of Chinese city is badly limited by Waste pollution, air pollution and water pollution.

After the 1990’s, with implement of policy “investment should more focus on urban infrastructure”, China’s waste management industry have been developing rapidly. The investments on capital asserts of waste management industry are increasing, the techniques of waste management are improving, the abilities of waste management are enhancing, the quantity of sound management are rising. But the yields of waste are increasing more quickly, so China’s rate of sound waste management is decreasing in recent years. At present, demand outweighs supply in China’s waste management market. 

One of the key reasons of above problems is, China’s government put all under its charge in waste management industry. The model of waste management based planned economy is harmful, so industrialization of waste management has been the trend of the times. With ordination of a series of policies, such as “The opinion on promoting industrialization of urban sewage and waste management”, the situation of multi-investor has been forming. While the foreign capitals enter China’s waste management market, the domestic capitals is gradually coming into the market by PPP etc. But we should notice that the foreign and domestic capitals which enter the market after the correlative policies are implemented is a few as a whole.

The reasons bring the problems include: 1) Regulation framework on waste management market hasn’t been established. 2) Charge mechanism isn’t perfect. The charge mechanism is the foundation of industrialization of waste management. 3) The reform of the system of environmental sanitation hasn’t kept up with the pace of industrialization of waste management.

(5 March  2007)