China is the largest waste paper importing market in the world. Due to more and more demands and awareness of environment/ safety issues, in recent years the Chinese government has implemented a number of new regulations on waste paper importing, for example, prohibiting importing of unsorted waste paper and lowering the foreign (non-paper) content in the imported waste paper from 1.5% to 0.5%. Small-scale (less than 50,000 tons per year capacity) paper mills are not eligible for importing waste paper. These new regulations have had profound impacts on the global waste paper recycling practice and the papermaking industry in China. At the same time, these new regulations bring up new challenges to the global waste paper recycling practices, such as increased labor costs and decreased recycling efficiency.