Circular Economy (CE) related approaches have emerged as a central strategy among urban governments and corporate actors involved in waste management (WM) and have been a focus of the China’s administration [23]. For both domains the informal recycling sector (IRS) (By ‘informal’ the chapter refers to any stakeholder that does hold some but not old all, officially required registrations to deal with WEEE) has been pivotal: Be that for shaping value chains of urban China’s WM or in achieving CE-styled life-time extensions for more complex consumer goods. The parallelism of the formal, state orchestrated and the informal systems have led to a critical challenge for circularity in China. Both sides operate within their respective systemic (rule-based) frameworks, and the informally developed system around second hand electronics effectively serves demands of the floating population in urban villages, such as Gangxia Shenzhen. With growing urbanization and official formalization contesting dynamics have emerged between municipal administrators and the IRS. This raises the question of why local policies did not organically integrate this recycling sector via the official top-down approach. The inquiry pursued in this chapter shows how informal recyclers do in some instances contribute to a more inclusive urban WM system that features social-environmentally sustainable CE practices beyond recycling. Moreover, the complex social fabric of this sector is inseparably intertwined with aspects of urbanization and employment options that lie at the root of the city’s complex development pattern.