Regarding waste separation，the only thing that China can be proud of is a rather high proportion of waste recycled，for which the waste recycling system in civic society is critical. After 2016，however，nearly all the large marketplaces for recycled waste located between the 5th and 6th Ring Roads in Beijing have been relocated，posing unprecedented and growing challenges for the survival of the waste recycling industry in civic society. How can a waste recycling system already in place for over 30 years continue their advantages under the new circumstances？This paper analyzes the status of the waste recycling system in Beijing，for example，especially the difficulties facing it，before explaining how it can continue playing a significant role in waste reduction and resources reuse as part of urban waste management by leveraging the opportunity of the government’s move of merging the urban sanitation and waste recycling networks.