Used oil is regarded as hazardous waste due to its high concentration of heavy metal, organic substances and perpetual organic pollutants. Our country does not have enough and clear regulation and law on the management of the oil. And the legal recycle company could not compete with the illegal due to the technology and economical limit. Thus the experience of foreign countries, such as America, Japan, Italy, and Germany were introduced. Most countries relied on producer liability, and public policy to help recycle the used oil. The suggestion for Chinese government has been given to adopt tax and law to act as power and pressure to encourage the development of treatment and recycling of used oil. (C) 2012 Selection and/or peer-review under responsibility of Basel Convention Coordinating Centre for Asia and the Pacific and National Center of Solid Waste Management, Ministry of Environmental Protection of China.