A draft revision of the Law on the Prevention and Control of Environmental Pollution Caused by Solid Waste, which includes the model now used for e-waste, has been released for public opinion.

Wang said this law could play an important role in the booming e-waste recycling market, and may result in many major electronics companies investing in this industry, as it will become compulsory for them to contribute.

He said that with a stronger financial capability and sense of social responsibility, these companies can do a better a job in preventing pollution during handling procedures.

Executives and experts also called for outdated collection methods and mindsets to change, adding that even when subsidies are paid on time, enterprises in the sector still struggle with slim profit margins.

Mao Da, policy consultant at the China Zero Waste Alliance, an NGO, said, "Without subsidies, it's almost impossible for e-waste recyclers that control pollution to make a profit if they have to pay for discarded electronic items.

"This puts recyclers operating legally at a disadvantage when competing with illegal ones that spend almost nothing to prevent pollution, as households tend to sell their waste to those who pay more," he added.

Industry insiders say the huge number of middlemen－especially small-scale, unlicensed scrap dealers－and the fact that consumers still expect money in return for unwanted home appliances drive up the price of reusable waste.

Mao said governments should crack down on e-waste being dismantled illegally, to ensure it is properly disposed of. "Once rogue recyclers disappear, people will gradually change their mindset on demanding compensation for the e-waste they discard," he said.

Wang, at TCL-AOBO, said the high price of waste means his company makes only 10 to 20 yuan from every TV set it dismantles, and this includes the subsidy.