Presently the waste processing and recycling of electronics in China is managed mostly by informal recycling busi-nesses. This sector runs a considerable risk of causing en-vironmental and occupational hazard. It also loses valu-able materials by applying inappropriate recycling tech-niques. Formal recycling industries have to compete with informal businesses, whilst still complying with environ-mental and occupational regulations. Several obstacles prevent formal recycling businesses from becoming com-petitive, such as the fact that the formal sector finds it diffi-cult to collect sufficient waste volumes due to international bans on waste imports, and high costs for collecting do-mestic obsolete equipment. In this paper, the costs of col-lection and transport for five products were analyzed within both formal and informal recycling industries. The payment to owners at the point of collection is the biggest financial burden recyclers have to carry. Formal busi-nesses have no other choice but to buy obsolete equipment from households or industries. Within the national pilot project, which investigates the strategies to establish an e-waste management system in China, authorities should consider providing financial support for e-waste collection.