The development of new legislation on collection, recycling and disposal of waste electrical and electronic equipment (WEEE) as well as the scaling-up and privatisation of the WEEE processing industry, are indications of major changes for WEEE management in China. However, China's attempts to regulate the industry and establish a financially viable, environmentally benign and safe WEEE management system are facing significant challenges. The existence of an extensive informal sector, combined with a lack of environmental awareness among WEEE collectors, recyclers and consumers, are contributing to China's difficulties in developing a financially and environmentally sound recycling and disposal system. This paper discusses the current status of WEEE recycling and disposal in China, and its impacts on the environment, human health, and the economy. It also examines the legislative and market responses to the WEEE issue, and how these will be affected by Chinese attitudes and practices towards WEEE recycling.