The Construction of SustainableSociety and the Dismantling

Industry of Used Mobile Phones in China

ZHANG, ChenggangTsinghua University

Email: zcgice@tsinghua.edu.cn

OUTLINE Ⅰ: The proliferation of used mobile phones Ⅱ:The present situation and dilemma of

China’s dismantling industry of used mobile phones

Ⅲ: The reasons for the dilemma of used mobile dismantling industry.

Ⅳ: The particularity of used mobile phone dismantling industry in China

Ⅴ: The complexity of dealing with mobile phone dismantling industry in China

VI: The Evolution of China’s Environmental Protection Policy

Background 1)Non-renewable resources and energies

are in short of supply in the whole world. This situation is particularly emergent in China. 2)The short of energies and resources is

constraining the economic development and the improvement of people’s living standard. 3)With the increasing popularity rate of

mobile phones and the piling up of used mobile phones, environment problems caused by mobile phones is becoming a universal problem in the world.

4)Similar with the developed countries, China faces the problem resulted by the great number of used mobile phones. If treated improperly, serious environment pollution may be resulted.. 5) China’s actual situations require us to

both alleviating the environment pressure and saving energies and resources. 6)Good, orderly and high-technological

electronic dismantling industry will both solve the pollution problems of used mobile phones and make good use of them.

ⅠThe proliferation of used mobile phones

0.3 0.6 1.1 1.93.5

6.7

11.2

16.1

21.0

25.9

35.3

41.6

45.647.3

0

5

10

15

20

25

30

35

40

45

50

1990 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Aug-

08

Nov-

08

increasing rate of china’s mobile phones （according to MII）

(1) the frequency for users discarding used mobile phones

24%

8%

16%

37%

8% 7%

36%

4%

14%

24%

11% 11%

0%

5%

10%

15%

20%

25%

30%

35%

40%

haven't

changed

mobile phone

half a year one year 1-2 years 3 years above 3 years

2008

2007

the time of people using mobile phone(2007VS2008)

(2) the amount of obsolete used mobile phones

29%

41%

22%

5%3%

35.0%

39.2%

15.2%

6.2%

2.4%0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

0 1 set 2 set 3 set above 3 set

2007年

2008年

how many mobile phones you have?

Ⅱ The situation and dilemma of China’s dismantling industry of used mobile phones 1) two confusing views:trash or

resource—about the essence of used mobiles 2) the increase of used mobiles and the

resource lack of dismantling industry. 3) the developed dismantling technology

and the lag recycling system.

4) dismantling technology—the coexistence of manpower and machine. 5) the coexistence of family workshop

and scaled factories.

A worker who is decomposing with hands while advancing appliances laying aside.

Ⅲ The reasons for the dilemma of used mobile dismantling industry. 1, For the reason of Echelon

consumption, there appears a special mobile phone cycle period of Chinese character.

1) the manifestation of economic imbalanc

13786

16974

11634 11309

4140

5855

38443028

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

The national average eastern area middle area western area

Disposable income of urbanresidents

Per capita net income ofrural residents

The income difference of Chinese citizen in 2007（China Statistical Yearbook 2008）unit=yuan

Average per capita disposable income (urban)

13785.8

4210.1

3357.9

6504.6

8900.5

12042.3

16385.8

22233.6

0.0 5000.0 10000.0 15000.0 20000.0 25000.0

national average

The lowest income households（10%）

Hardship households（5%）

Low-income households（10%）

Lower-middle households（20%）

middle households（20%）

Upper-middle households（20%）

High-income households（10%）

The average disposable income of citizens （China Statistical Yearbook 2008）unit=yuan

Average per capita net income (rural)

1346.9

2581.8

3658.8

5129.8

9790.7

0.0 2000.0 4000.0 6000.0 8000.0 10000.0 12000.0

Low-income households

（10%）

Lower-middle

households（20%）

middle households

（20%）

Upper-middle

households（20%）

High-income

households（10%）

Average per capita net income (rural) （China Statistical Yearbook 2008）unit=yuan

2) the imbalance of economy brings the imbalance of mobiles popularity rate.

62.9

90.1

111.4

137

152.9

13.723.7

34.7

50.262.1

0

20

40

60

80

100

120

140

160

180

2002 2003 2004 2005 2006

Urban mobile phone（set/hundrendhousehold）

rural mobile phone（set/hundrendhousehold）

The change of number of mobiles owned by rural-urban families（China Information Yearbook 2007,

unit=set/hundrend household）

the absolute gap of mobile phone ownership between urban and

rural households 2002 -2006

49.2

66.4

76.780.8

90.8

0

10

20

30

40

50

60

70

80

90

100

2002 2003 2004 2005 2006

absolute gap of mobile phone ownership between urban and rural households 2002 -2006(China Information Yearbook 2007)

relative gap of mobile phone ownership between urban and rural

households 2002 -2006

0.780.74

0.690.63

0.59

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

2002 2003 2004 2005 2006

Relative gap of mobile phone ownership between urban and rural households 2002 -2006

(China Information Yearbook 2007)

3) the comparison of Gini coefficients between mobiles and average GDP

0.3377 0.3366 0.34120.3214 0.3152 0.313

0.36020.3426

0.31260.2875

0.27410.2529

0

0.05

0.1

0.15

0.2

0.25

0.3

0.35

0.4

2001 2002 2003 2004 2005 2006

GDP

mobile phone

4) people’s different incomes lead to the result that they buy different price-level mobiles.

7.4%

15.1%

20.8%

13.7%

23.6%

5.0%1.9%

12.5%

36.3%

44.4%

10.6%

1.9%

19.1%

39.1%

31.8%

6.4%5.3%

43.0%

6.9%

20.7%

46.4%

1.3%0.9%

2.7%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

50.0%

below 500 yuan 500～1000 yuan 1000～2000 yuan 2000～3000 yuan 3000～4000 yuan above 4000 yuan

big city

middle and smallcity

Town

rural area

5 )Mobile phones given to the relatives and friends

25.4%

22.6%

12.8%

11.8%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0%

big city

middle and small

city

Town

rural area

the proportion of different regions send used mobile phones to friends and relatives

2,Multiple ways of dealing with used mobile phones

retaining for their own (40% , 75.7%); giving to relatives and friends

(approximately 30%,21%); selling (paid Reclamation) (about

22%,14%); free reclamation (special garbage) (about

3%,0.6%); throwing away as ordinary trash (about

3%,5.5% )

75.7%

20.7%

5.5%

14.1%

0.6%

39.4%

29.5%

3.2%

21.8%

2.5%

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0%

retaining for their own

giving to relatives and friends

throwing away as ordinary trash

selling(paid reclamation)

free reclamation(special garbage) 2008 2007

3，second-hand mobile phone consumption caused by unbalanced economy

1) In accordance with the geographical classification of users, they can be divided into three categories. 2) In accordance with the occupations

(or identities) of consumers they are roughly divided into five categories.

4，mobile phone maintenance industry

65.6%

30.0%

yes

no

Have you repaired your mobile phone?

The particularity of China’s way of dealing with used phones

Ⅳ the particularity of used mobile phone dismantling industry in China

1，Used mobile phones :old but not waste

2，The embarrassing situation of mobile phone dismantling industry

Ⅴ The complexity of dealing with mobile phone dismantling industry in China

1,the Building of Complex Recycling System. 2,Conjunct impacts of different factors 1) Public participation 2)Producers’ extended responsibility 3)Market management

4）international cooperation

4.7%

5.8%

7.7%

10.0%

10.4%

10.6%

13.1%

14.4%

15.5%

16.7%

21.1%

48.3%

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0%

Don't know mobile phones can be recycled

recovery procedure is trouble

as monuments collection

it's pity to destruct recycle mobile phone

not interested in mobile phone recovery

make use of function except calling

haven't thought

inconvenient to go to recycle site

remain as backup mobile phone

don't know where the recycle site is

Worry about leakage of personal information

Recovery price is too low

The reasons people don’t have their used mobile phone reclamation

Would you like have your used mobile phone reclamation to the counter When buying a new one?

4.4%

49.8%

19.4%

24.7%

47.2%

27.4%

20.1%

3.8%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

Unconditional

willing

If discount,

willing to

unwilling never thought

2008

2007

VI The Evolution of China’s Environmental Protection Policy 1)1949-1977,the period of priority over the

development strategies of heavy industry 2)1978-1980s, the period of

modernization development strategy 3)1990s-2002, the period of sustainable

development strategies 4),2003-now, the period of ecological

civilization development strategy

The low-carbon economy 1)From aiming at economic growth to aiming at

both environmental protection and economic growth,

2)From environmental protection lagging behind economic growth to both marching abreast, and from mainly resorting to administrative measures to a combination of legal, economic, technical and necessary administrative means to solve environmental problems.

3)"Environmental protection optimizes economic growth" had gradually become important principles for formulation and implementation of environmental policy.

Project 2001 2002 2003 2004 2005 2006 2007 2008 Growthrate

Urban environmental infrastructure construction investment 595.7 785.3 1072.4 1141.2 1289.7 1314.9 1467.8 1801.0 22.7

Industrial pollution control investment 174.5 188.4 221.8 308.1 458.2 483.9 552.4 542.6 -1.2

Construction of the "three simultaneous" projects 336.4 389.7 333.5 460.5 640.1 767.2 1367.4 2146.7 57.0

Total investment 1106.6 1363.4 1627.3 1909.8 2388.0 2566.0 3387.6 4490.3 32.6

Research Center for Japanese Studies, Tsinghua University

1)International cooperation between Tsinghua(China) and Japan 2)Support many low-carbon economy

programmes

Best wishes for a low-carbon society in the world!

Thank you for your attention!