China, as the world's largest producer of PET, faces significant hurdles in establishing a robust and high-value plastic recycling ecosystem. While all waste plastic is theoretically recyclable, the reality is a complex web of challenges that ultimately limit the availability of high-grade recycled materials, such as food or cosmetic-grade pellets, within the domestic market. This stands in contrast to developed nations, which successfully produce clear, pure, high-end recycled flakes. The core issues span the entire chain from households to industry and policy.