China’s “two new” policy refers to “large-scale equipment renewals” and “trade-ins of consumer goods” for energy saving, economic stimulus and carbon reduction. The policy was issued by the State Council in 2024. It has four aspects: “implementing equipment updates”; “trade-in of consumer goods”; “recycling”; and “improving standards”. Recycling, in particular, is to serve China’s “circular economy”. In line with the policy, China established a state-owned enterprise, China Resources Recycling Group, to recycle steel, as well as batteries and plastics, among other materials. President Xi supported the launch of the company, saying the establishment is “an important decision…to perfect an economy that facilitates green, low-carbon, and circular development, and advance the building of a 'beautiful China' on all fronts”. (See Carbon Brief’s Q&A on how China’s “two new” policy aims to help cut emissions.)