Extended　producer　responsibility　(EPR)　is　important　to　achieve　a　sustainable　recycling-oriented　circular　economy　system　because　EPR　can　guarantee　that　recycling　companies　obtain　average　profit　margins.　A　unique　Waste　Electrical　and　Electronic　Equipment　(WEEE)　fund　system　was　implemented　in　China　in　2012.　However,　the　fund　system　encountered　a　dilemma:　it　cannot　pay　for　itself.　A　Fund　Balance　Analysis　Model　is　built　to　estimate　the　accumulated　government　fund　deficit.　The　result　shows　that　the　deficit　will　grow　to　$33.0　billion　from　2012　to　2030.　A　new　fund　operation　mode,　which　adds　the　consumer　pay　part,　is　established　in　this　study.　This　mode　uses　5　years　as　a　fund　adjustment　time　interval　and　the　period　of　2015-2050　is　divided　into　7　intervals.　According　to　the　time　sequence,　a　gradually　increasing　fund　collection　standard,　which　is　easy　for　consumers　to　adopt,　is　determined　to　achieve　a　sustainable　fund　system.　Given　that　the　Electrical　and　Electronic　Equipment　sales　quantity　in　China　is　obviously　higher　than　the　formally　dismantled　WEEE　in　recent　years,　the　funds　collected　will　be　higher　than　subsidies,　and　a　fund　pool　will　be　formed　in　the　early　stage.　This　fund　pool　plays　an　important　role　in　the　establishment　of　sustainable　fund　operations　as　it　will　continue　to　provide　a　capital　source　for　the　fund　appreciation　in　the　ensuing　years.　The　incentive　problem　of　eco-design　can　be　easily　solved　by　this　new　mode　because　China＇s　government　plays　a　strong　role　in　the　WEEE　fund　operation　and　can　directly　reward　the　producers　that　meet　the　eco-design　requirements.　Additionally,　this　mode　is　very　convenient　for　addressing　external　factors,　such　as　the　eco-design　and　trans-boundary　trade,　with　a　few　changes　in　the　fund　collection　standard.　(C)　2017　Elsevier　Ltd.　All　rights　reserved.