There is no manufacturer in China that has the capacity to recycle all the batteries from citizens, because it would be on such a large scale. They usually end up sitting around in warehouses, untouched.
In which case, China has been trying to create mercury free or low-mercury batteries, which cause low to almost no environmental damage or risks. Therefore, what is promoted in China for now, is that batteries can be treated as regular waste, and because of the low mercury, can be decomposed with little environmental impact. However, they have to be mixed with a lot of domestic waste and cannot be thrown away is large quantities because it can cause some mercury pollution in a specific area.
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