**UNITED
      STATES**


**SECURITIES
      AND EXCHANGE COMMISSION**


**WASHINGTON,
      D.C. 20549**





**FORM
      10-QSB**





(MARK
      ONE)





[X]
            QUARTERLY
                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
                ACT OF
                1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2007





[  
                ]
            TRANSITION
                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
                ACT OF
                1934 FOR THE TRANSITION PERIOD FROM _________ TO
                __________





COMMISSION
      FILE NUMBER: 002-95836-NY




_ **CHINA
      INDUSTRIAL WASTE MANAGEMENT INC.**


(EXACT
      NAME OF SMALL BUSINESS ISSUER AS SPECIFIED IN ITS CHARTER)




NEVADA
            13-3250816(STATE
                OR OTHER JURISDICTION OFI
                NCORPORATION OR ORGANIZATION)
            (I.R.S.
                EMPLOYERIDENTIFICATION
                NO.)











c/o
      Dalian Dongtai Industrial Waste Treatment Co., Ltd


No.
      1
      Huaihe West Road E-T-D-Zone, Dalian, China  116600


(ADDRESS
      OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)





ISSUER
      'S
      TELEPHONE NUMBER, INCLUDING AREA CODE: 011-86-411-9770-3333





American
      Union Securities, Inc.


Attention:
      China Industrial Waste Management, 15th Floor


100
      Wall
      Street, New York, NY 10005


--------------------------------------------------------


Agent
      Contact Information


Agent’s
      Telephone number: 212-232-0120





Indicate
      by check mark whether the Registrant (1) has filed all reports required to
      be
      filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
      the
      preceding 12 months (or for such shorter period that the Registrant was required
      to file such
      reports), and (2) has been subject to such filing requirements for the past
      90
      days. Yes |X| No |_|.




Indicate
      by check mark whether the registrant is a shell company (as defined in Rule
      12b-2 of the Exchange Act). Yes |_| No |X|.




The
      number of shares of Common Stock of the Registrant, par value $.001 per share,
      outstanding at March 31, 2007 was 13,220,843.




Transitional
      Small Business Disclosure Format (Check one): Yes |_| No |X|.





1





**CHINA
      INDUSTRIAL WASTE MANAGEMENT INC.**


INDEX
      TO
      MARCH 31, 2007 FORM 10-QSB





PagePart
                I - Financial Information
            
            3Item
                1 - Financial Statements
            
            3Consolidated
                Balance Sheets as of March 31, 2007 (unaudited) and December 31,
                2006
            
            3Consolidated
                Statements of Operations for the three months ended March31,
                2007 and March 31, 2006 (unaudited)
            
            4Consolidated
                Statements of Cash Flows for the three months ended March31,
                2007 and March 31, 2006 (unaudited)
            
            5Notes
                to the Consolidated Financial Statements (unaudited)
            
            6Item
                2 - Management's Discussion and Analysis or Plan of
                Operation
            
            15Item
                3 - Controls and Procedures
            
            18Part
                II - Other Information
            
            19Item
                1 - Legal Proceedings
            
            19Item
                2 - Unregistered Sales of Equity Securities and Use of
                Proceeds...
            
            19Item
                3 - Defaults
                Upon Senior Securities
            
            19Item
                4 - Submission
                of Matters to a Vote of Security Holders
            
            19Item
                5 - Other Information
            
            19Item
                6 - Exhibits
            
            19Signature
                Page
            
            20





2





**PART
      I.**  **FINANCIAL
      INFORMATION**





**Item
      1.**  **Financial
      Statements**






**CHINA
                  INDUSTRIAL WASTE MANAGEMENT, INC.****CONSOLIDATED
                  BALANCE SHEETS**(In
                  U.S. dollars)March
                  31,
              
              December
                  31,2007
              
              2006(Unaudited)**ASSETS**Current
                  assetsCash
                  and cash equivalents
              
              $
              3,626,913
              
              $
              5,660,698Trade
                  accounts receivable, net
              
              
              258,823
              
              
              151,144Other
                  receivables
              
              
              13,091
              
              
              50,789Inventory
              
              
              774,326
              
              
              602,582Advances
                  to suppliers
              
              
              3,901
              
              
              374,046Deferred
                  expense
              
              
              40,142
              
              
              20,490Tax
                  receivable
              
              
              6,398
              
              
              -Total
                  current assets
              
              
              4,723,594
              
              
              6,859,749Investment
              
              
              1,592,925
              
              
              361,136Property,
                  plant & equipment
              
              
              3,986,672
              
              
              3,927,234Less:
                  Accumulated depreciation
              
              
              (1,607,983
              )
              
              (1,487,340
              )Net
                  property, plant and equipment
              
              
              2,378,689
              
              
              2,439,894Construction
                  in progress
              
              
              1,851,374
              
              
              202,974Land
                  usage right, net of accumulated amortization
              
              
              1,530,064
              
              
              1,524,319Related
                  party receivable
              
              
              363,321
              
              
              231,793**Total
                  assets**
              
              $
              12,439,967
              
              $
              11,619,865**LIABILITIES
                  AND STOCKHOLDERS' EQUITY**Current
                  liabilitiesAccounts
                  payable
              
              $
              236,455
              
              $
              92,255Tax
                  payable
              
              
              -
              
              
              6,346Deferred
                  sales
              
              
              459,936
              
              
              455,548Accrued
                  expenses
              
              
              17,490
              
              
              15,410Other
                  payables
              
              
              118,722
              
              
              181,136Total
                  current liabilities
              
              
              832,603
              
              
              750,695Minority
                  interest in subsidiary
              
              
              1,180,371
              
              
              1,086,917Stockholders'
                  equityPreferred
                  stock: par value $.001; 5,000,000 shares authorized; none issued
                  and
                  outstanding
              
              
              -
              
              
              -Common
                  stock: par value $.001; 95,000,000 shares authorized; 13,220,843
                  shares
                  issued and outstanding
              
              
              13,221
              
              
              13,221Additional
                  paid-in capital
              
              
              1,956,634
              
              
              1,952,634Other
                  comprehensive income
              
              
              426,322
              
              
              478,500Retained
                  earnings
              
              
              8,030,816
              
              
              7,337,898Total
                  stockholders' equity
              
              
              10,426,993
              
              
              9,782,253**Total
                  liabilities and stockholders' equity**
              
              $
              12,439,967
              
              $
              11,619,865
   See
        notes
        to Consolidated Financial Statements.
     3
     **CHINA
                    INDUSTRIAL WASTE MANAGEMENT, INC.****CONSOLIDATED
                    STATEMENTS OF OPERATIONS****(In
                    U.S. dollars)****(Unaudited)**For
                    Three Months Ended March 31,2007
                
                2006Revenue
                
                $
                1,682,972
                
                $
                1,551,437Costs
                    of revenue (including depreciation)
                
                
                495,317
                
                
                438,778Gross
                    profit
                
                
                1,187,655
                
                
                1,112,659Operating
                    expensesSelling
                    expenses
                
                
                204,241
                
                
                153,479General
                    and administrative expenses
                
                
                217,160
                
                
                253,037Total
                    operating expenses
                
                
                421,401
                
                
                406,516Income
                    from operations
                
                
                766,254
                
                
                706,143Other
                    income (expense)Interest
                    income
                
                
                2,804
                
                
                -Other
                    income
                
                
                368
                
                
                -Other
                    expense
                
                
                (27
                )
                
                (35
                )Total
                    other income (expense)
                
                
                3,145
                
                
                (35
                )Net
                    income before minority interest and income tax
                
                
                769,399
                
                
                706,108Income
                    tax (benefit)
                
                
                -
                
                
                -Net
                    income after income tax
                
                
                769,399
                
                
                706,108Minority
                    interest
                
                
                76,481
                
                
                70,611Net
                    income
                
                $
                692,918
                
                $
                635,497Foreign
                    currency translation adjustment
                
                
                (52,178
                )
                
                81,826Comprehensive
                    income
                
                $
                640,740
                
                $
                717,323Basic
                    weighted average shares outstanding
                
                
                13,220,843
                
                
                13,140,843Diluted
                    weighted average shares outstanding
                
                
                13,220,843
                
                
                13,140,843Basic
                    and diluted net earnings per share
                
                $
                0.05
                
                $
                0.05
   See
        notes
        to Consolidated Financial Statements.
     4
  **CHINA
                    INDUSTRIAL WASTE MANAGEMENT, INC.****CONSOLIDATED
                    STATEMENTS OF CASH FLOWS**(In
                    U.S. dollars)(Unaudited)For
                    the three months ended2007
                
                2006Cash
                    flows from operating activities:Net
                    income
                
                $
                692,918
                
                $
                635,497Adjustments
                    to reconcile net income to net cashprovided
                    by operating activities:Minority
                    interest
                
                
                76,481
                
                
                70,611Depreciation
                
                
                105,666
                
                
                77,518Amortization
                
                
                8,908
                
                
                8,595Bad
                    debt allowance
                
                
                14,881
                
                
                -Stock
                    issued for services
                
                
                4,000
                
                
                -Changes
                    in operating assets and liabilities:Accounts
                    receivable
                
                
                (105,857
                )
                
                (157,389
                )Inventory
                
                
                (165,004
                )
                
                (3,862
                )Other
                    receivables
                
                
                (158,947
                )
                
                209,517Advance
                    to suppliers
                
                
                (1,843
                )
                
                (138,935
                )Prepaid
                    expense
                
                
                (19,388
                )
                
                10,201Deferred
                    sales
                
                
                1,565
                
                
                (6,949
                )Accounts
                    payable & other payables
                
                
                (23,611
                )
                
                (158,108
                )Tax
                    payables
                
                
                (12,761
                )
                
                60,643Net
                    cash provided by operating activities
                
                
                417,008
                
                
                607,339Cash
                    flows from investing activiiesEquity
                    investment
                
                
                (1,210,643
                )
                
                (37,297
                )Purchase
                    of property and equipment
                
                
                (21,019
                )
                
                (155,425
                )Construction
                    contracts
                
                
                (1,266,472
                )
                
                (141,355
                )Net
                    cash used in investing activities
                
                
                (2,498,125
                )
                
                (334,077
                )Cash
                    flows from financing activitiesNet
                    cash used in financing activities
                
                
                -
                
                
                -
 Effect
                  of exchange rate on cash
              
              47,332
              
              20,445Net
                  increase in cash and cash equivalents
              
              (2,033,785
              )
              293,707Cash
                  and cash equivalents, beginning of period
              
              
              5,660,698
              
              
              2,944,243Cash
                  and cash equivalents, end of period
              
              $
              3,626,913
              
              $
              3,237,950Supplemental
                  cash flow information:Cash
                  paid during the year for:Interest
              
              $
              -
              
              $
              -Income
                  taxes
              
              $
              -
              
              $
              -
   See
        notes
        to Consolidated Financial Statements.


5








**CHINA
      INDUSTRIAL WASTE MANAGEMENT, INC.**


NOTES
      TO
      UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS


MARCH
      31,
      2007




The
      accompanying unaudited consolidated financial statements have been prepared
      in
      accordance with accounting principles generally accepted in the United States
      of
      America for interim financial information and with the instructions to Form
      10-QSB and Item 310 of Regulation S-B. Accordingly, they do not include all
      of
      the information and footnotes required by accounting principles generally
      accepted in the United States of America for annual financial statements. In
      the
      opinion of management, all adjustments (consisting of normal recurring accruals)
      considered necessary for a fair presentation have been included. The accounts
      of
      the Company and all of its subsidiaries are included in the consolidated
      financial statements. All significant intercompany accounts and transactions
      have been eliminated in consolidation. The consolidated operating results for
      the three months ended March 31, 2007 are not necessarily indicative of the
      results that may be expected for the year ending December 31, 2007. For further
      information, refer to the consolidated financial statements and footnotes
      thereto included in the Company's Form 10-KSB for the year ended December 31,
      2006.





**1.**
            **Nature
                of operations**





The
      unaudited consolidated financial statements are those of China Industrial Waste
      Management, Inc., a Nevada Corporation formerly known as Goldtech Mining
      Corporation, (the “Company”) and its majority owned subsidiaries. Dalian Dongtai
      Industrial Waste Treatment Co. Ltd. (“Dongtai”) was incorporated on January 9,
      1991. As of March 31, 2007 Dongtai has three subsidiaries - Liaoyang Dongtai
      Industrial Waste Treatment Co. Ltd (“Liaoyang Dongtai”), Dongtai Water Recycling
      Company (“Dongtai Water”) and Dongtai Organic Waste Treatment Company(“Dongtai
      Organic”). Dongtai is located in Economic and Technology Development Zone,
      Dalian, People’s Republic of China (“PRC”). Dongtai is engaged in the
      collection, treatment, disposal and recycling of industrial waste in China.
      The
      Company recovers all types of industrial wastes which can be used as raw
      material to produce chemical and metallurgy products. Dongtai also provides
      incineration, burial, and water treatment services. Dongtai also provides
      service for environment protection, technology consultation, pollution
      treatment, and waste managing process design.





Liaoyang
      Dongtai was incorporated on March 22, 2006. Dongtai has a 60% interest in this
      subsidiary. Liaoyang Dongtai is located in Liaoyang, People’s Republic of China
      (PRC) and is engaged in the business of the collection, treatment, disposal
      and
      recycling of industrial wastes.


6


Dongtai
      Water Recycling Company was incorporated on July, 2006. Dongtai acquired 18%
      of
      the equity in such company. Dongtai Water is a Build-Operate-Transfer (BOT)
      project, designed to process polluted water generated by the city of
      Dalian.





On
      March
      2, 2007, the Company purchased for 49% of the equity of a newly formed company
      named Dongtai Organic Waste Treatment Company. Dongtai Organic is basically
      a
      BOT project, engaged in municipal sludge treatment. Dongtai Organic will operate
      for the next 20 years.





China
      Industrial Waste Management, Inc. (“CIWM”) was incorporated in the State of
      Delaware on August 16, 2005. On September 22, 2005, CIWM acquired 90% of the
      outstanding shares of Dongtai from its shareholders in exchange for 1,280,000
      shares of CIWM common stock, representing 100% of the issued and outstanding
      common stock of CIWM at the date of the acquisition.





The
      exchange of shares with Dongtai has been accounted for as a reverse acquisition
      under the purchase method of accounting since the shareholders of Dongtai
      obtained control of the combined company. Accordingly, the merger of the two
      companies was recorded as a recapitalization of Dongtai, with Dongtai being
      treated as the continuing entity. The historical financial statements presented
      herein are of Dongtai and subsidiaries. Pro forma financial statements are
      not
      presented as the amounts are insignificant.





On
      November 11, 2005, CIWM and its shareholders entered into a Share Exchange
      Agreement with the Company, which closed on November 11, 2005. Pursuant to
      the
      agreement, the Company acquired all of the outstanding equity stock of CIWM
      from
      its shareholders. As consideration for the acquisition of CIWM, the Company
      issued 64,000 shares of the Company’s Series A Convertible Preferred stock to
      CIWM’s shareholders. Each share of Series A Convertible Preferred Stock was
      converted into 100 shares of common stock.





The
      exchange of shares with the Company was accounted for as a reverse acquisition
      under the purchase method of accounting since the shareholders of CIWM obtained
      control of the Company. Accordingly, the merger of the two companies was
      recorded as a recapitalization of CIWM, with CIWM being treated as the
      continuing entity. The financial statements of the legal acquiree (the Company)
      are not significant, therefore, no pro forma financial information is
      submitted.





The
      Company incorporated a wholly-owned Delaware company, named “Dalian Acquisition
      Corp.” in November 2005, which has been renamed as “DonTech Waste Services
      Inc.”(“DonTech”). In November 2005 a reverse merger transaction was consummated
      in which a holding corporation which owned 90% of the stock of Dongtai merged
      into DonTech and the stockholders of the holding company received shares of
      common stock of CIWT. The holding company had acquired its 90% interest in
      Dongtai in September 2005 from the stockholders of Dongtai for a purchase price
      of $2.07 million. The selling stockholders retained a 10% interest in
      Dongtai.


7





On
      May
      12, 2006, the Company changed its name to “China Industrial Waste Management,
      Inc.” and began trading under a new trading symbol (CIWT). In addition the
      Company effected a 1:100 reverse split of its outstanding common shares.





On
      May
      15, 2006, the Company issued to 10 stockholders an aggregate of 6,400,000
      additional shares of the Company's Common Stock as an equitable adjustment
      of
      the number of shares which the Company had agreed to issue to such persons
      pursuant to a Share Exchange Agreement entered into on November 11,
      2005.





**2.
      Basis of Presentation**





The
      accompanying consolidated financial statements include the accounts of China
      Industrial Waste Management, Inc., a Nevada corporation, its 100% owned
      subsidiary, DonTech Waste Services Inc., a Delaware corporation, its 90%
      indirectly owned subsidiary, Dalian Dongtai Industrial Waste Treatment Co.,
      Ltd,
      a PRC Company, and its 60% indirectly owned subsidiary Liaoyang Dongtai
      Industrial Waste Treatment Co. Ltd., a PRC company. All material inter-company
      accounts and transactions have been eliminated in the
      consolidation.





The
      accompanying financial statements are prepared in accordance with accounting
      principles generally accepted in the United States of America (US GAAP). This
      basis differs from that used in the statutory accounts of the Company, which
      were prepared in accordance with the accounting principles and relevant
      financial regulations applicable to enterprises in the PRC. All necessary
      adjustments have been made to present the financial statements in accordance
      with US GAAP.


8


**3.
      Summary of Significant Accounting Policies**





Economic
      and Political Risks





The
      Company faces a number of risks and challenges as a result of having primary
      operations and markets in the PRC. Changing political climates in the PRC could
      have a significant effect on the Company’s business.








Foreign
      currency translation





As
      of
      March 31, 2007 and 2006, the accounts of the Company were maintained, and the
      consolidated financial statements were expressed in the Chinese Yuan Renminbi
      (“RMB”). Such consolidated financial statements were translated into U.S.
      dollars (“USD”) in accordance with Statement of Financial Accounting Standards
      (“SFAS”) No. 52, “Foreign Currency Translation,” with the RMB as the functional
      currency. According to the Statement, all assets and liabilities were translated
      at the exchange rate on the balance sheet date, stockholders’ equity was
      translated at the historical rates and the statement of operations items were
      translated at the weighted average exchange rate for the period. The resulting
      translation adjustments are reported under other comprehensive income in
      accordance with SFAS No. 130, “Reporting Comprehensive Income.”





Use
      of
      estimates





The
      preparation of financial statements in conformity with generally accepted
      accounting principles requires management to make estimates and assumptions
      that
      affect the reported amounts of assets and liabilities and disclosure of
      contingent assets and liabilities at the date of the financial statements and
      the reported amounts of revenues and expenses during the reporting period.
      Actual results could differ from those estimates.





Cash
      and cash equivalents





Cash
      and
      cash equivalents include cash on hand and cash on deposit, certificates of
      deposit and all highly liquid debt instruments with original maturities of
      three
      months or less.





Accounts
      and other receivables





Accounts
      and other receivables are recorded at net realizable value consisting of the
      carrying amount less an allowance for uncollectible accounts, as needed.
      Allowance for uncollectible accounts as of March 31, 2007 is
      $20,747.





The
      Company maintains reserves for potential credit losses on accounts receivable.
      Management reviews the composition of accounts receivable and analyzes
      historical bad debts, customer concentrations, customer credit worthiness,
      current economic trends and changes in customer payment patterns to evaluate
      the
      adequacy of these reserves. Terms of
      the
      sales vary from COD through a credit term of up to nine to twelve months.
      Reserves are recorded primarily on a specific identification
      basis.


9





Advances
      to suppliers





The
      Company makes advances to certain vendors for purchase of its material or
      equipment. The advances to suppliers are interest free and
      unsecured.





Inventory





Inventories
      are stated at the lower of cost, as determined on a first-in, first-out basis,
      or market. Management compares the cost of inventories with the market value,
      and allowance is made for writing down the inventories to their market value,
      if
      lower.





Property,
      equipment and construction in progress





Property
      and equipment are stated at cost. Expenditures for maintenance and repairs
      are
      charged to earnings as incurred; additions, renewals and betterments are
      capitalized. When property and equipment are retired or otherwise disposed
      of,
      the related cost and accumulated depreciation are removed from the respective
      accounts, and any gain or loss is included in operations. Depreciation of
      property and equipment is provided using the straight-line method for
      substantially all assets with estimated lives as follows:




Buildings
            30
                YearsMachinery
            10
                YearsVehicles
            8
                YearsOffice
                equipment
            5Years




Construction
      in progress consists of the design expenses, architect fee and cost of the
      equipment to treat waste.





Long-term
      investment





Long-term
      investments are recorded under the equity method. Although we acquired less
      than
      20% equity of the invested company, namely Dongtai Water Recycling, the majority
      of equity of that company is controlled indirectly by Mr. Dong Jinqing, CEO
      and
      CFO of the company.





Asset
      impairments




We
      monitor the carrying value of our long-lived assets for potential impairment
      and
      test the recoverability of such assets whenever events or changes in
      circumstances indicate that their carrying amounts may not be recoverable.
      Typical indicators that an asset may be impaired include:


10


•
A
      significant decrease in the market price of an asset or asset group;




•
A
      significant adverse change in the extent or manner in which an asset or asset
      group is being used or in its physical condition;




•
A
      significant adverse change in legal factors or in the business climate that
      could affect the value of an asset or asset group, including an adverse action
      or assessment by a regulator;




•
An
      accumulation of costs significantly in excess of the amount originally expected
      for the acquisition or construction of a long-lived asset;




•
Current
      period operating or cash flow losses combined with a history of operating or
      cash flow losses or a projection or forecast that demonstrates continuing losses
      associated with the use of a long-lived asset or asset group; or




•
A
      current expectation that, more likely than not, a long-lived asset or asset
      group will be sold or otherwise disposed of significantly before the end of
      its
      previously estimated useful life.







If
      any of
      these or other indicators occurs, the asset is reviewed to determine whether
      there has been an impairment. An impairment loss is recorded as the difference
      between the carrying amount and fair value of the asset. If significant events
      or changes in circumstances indicate that the carrying value of an asset or
      asset group may not be recoverable, we perform a test of recoverability by
      comparing the carrying value of the asset or asset group to its undiscounted
      expected future cash flows. If cash flows cannot be separately and independently
      identified for a single asset, we will determine whether an impairment has
      occurred for the group of assets for which we can identify the projected cash
      flow. If the carrying values are in excess of undiscounted expected future
      cash
      flows, we measure any impairment by comparing the fair value of the asset or
      asset group to its carrying value. Fair value is determined by either an
      internally developed discounted projected cash flow analysis of the asset or
      asset group or an actual third-party valuation. If the fair value of an asset
      or
      asset group is determined to be less than the carrying amount of the asset
      or
      asset group, an impairment in the amount of the difference is recorded in the
      period that the impairment indicator occurs.





11


Intangible
      assets





Intangible
      assets consist of “Rights to use land and build a plant” for fifty years and
“Rights of use landfill” for twenty years. The methods to amortize intangible
      assets are a fifty year straight-line method and a twenty year straight-line
      method for landfill. The Company also evaluates intangible assets for
      impairment, at least on an annual basis and whenever events or changes in
      circumstances indicate that the carrying value may not be recoverable from
      its
      estimated future cash flows. Recoverability of intangible assets, other
      long-lived assets and, goodwill is measured by comparing their net book value
      to
      the related projected undiscounted cash flows from these assets, considering
      a
      number of factors, including past operating results, budgets, economic
      projections, market trends and product development cycles. If the net book
      value
      of the asset exceeds the related undiscounted cash flows, the asset is
      considered impaired, and a second test is performed to measure the amount of
      impairment loss.





Net
      intangible assets on March 31, 2007 were $1,530,064 Such assets consist entirely
      of a right to use land of $1,680,789 less accumulated amortization of $150,725.




Minority
      interest





Minority
      interest represents the minority owners’ 10% equity interest in Dalian Dongtai
      and 40% equity interest in Liaoyang Dongtai.





Fair
      value of financial instruments





Statements
      of Financial Accounting Standards No. 107, “Disclosures About Fair Value of
      Financial Instruments, requires that the Company disclose estimated fair values
      of financial instruments. The carrying amounts reported in the statements of
      financial position for current assets and current liabilities qualifying as
      financial instruments are a reasonable estimate of fair value.





Revenue
      recognition





The
      Company’s revenue recognition policies are in compliance with Staff Accounting
      Bulletin (SAB) 104.





Our
      revenues are generated from the fees we charge for waste collection, transfer,
      disposal and recycling services and the sale of recycled commodities. The fees
      charged for our services are generally defined in our service agreements and
      vary based on contract specific terms such as frequency of service, weight,
      volume and the general market factors influencing industry’s rates. We generally
      recognize revenue as services are performed or products are
      delivered.





Deferred
      sales consist of contracts for which the fees have been collected but revenue
      has not yet been recognized in accordance with the revenue recognition policy.
      As of March 31, 2007 deferred sales amounted to $459,936.


12





Advertising
      costs





The
      Company expenses the cost of advertising as incurred or, as appropriate, the
      first time the advertising takes place. Advertising costs for the three months
      ended March 31, 2007 and 2006 were immaterial.





Stock-based
      compensation





In
      December 2004, the FASB issued SFAS No.123(R) which prescribes accounting and
      reporting standards for all stock based compensation plans, including employee
      stock options, restricted stock, employee stock purchase plans and stock
      appreciation rights. SFAS No. 123(R) requires compensation expense to be
      recorded using the fair value method.





Income
      taxes





The
      Company utilizes SFAS No. 109, “Accounting for Income Taxes” which requires the
      recognition of deferred tax assets and liabilities for the expected future
      tax
      consequences of events that have been included in the financial statements
      or
      tax returns. Under this method, deferred income taxes are recognized for the
      tax
      consequences in future years of differences between the tax bases of assets
      and
      liabilities and their financial reporting amounts at each period end based
      on
      enacted tax laws and statutory tax rates, applicable to the periods in which
      the
      differences are expected to affect taxable income. Valuation allowances are
      established, when necessary, to reduce deferred tax assets to the amount
      expected to realized.





Local
      PRC income tax





The
      Company is subject to the PRC Enterprise Income Tax at a rate of 30% percent
      on
      its net income. According to a PRC ruling, any joint venture with foreign
      investment will get special tax exempt treatment for the first two years.





Statement
      of cash flows





In
      accordance with Statement of Financial Accounting Standards No. 95, “Statement
      of Cash Flows,” cash flows from the Company’s operations are calculated based
      upon the local currencies. As a result, amounts related to assets and
      liabilities reported on the statement of cash flows will not necessarily agree
      with changes in the corresponding balances on the balance sheet.





Basic
      and diluted net earnings per share





Earnings
      per share is calculated in accordance with Statement of Financial Accounting
      Standards No. 128 (“SFAS No. 128), “Earnings Per Share”. Basic earnings per
      share is based upon the weighted average number of common shares outstanding.
      Diluted earnings per share is based on the assumption that all dilutive
      convertible shares and stock options were converted or exercised. Dilution
      is
      computed by applying the treasury stock method. Under this method, options
      and
      warrants are assumed to be exercised at the beginning of the period (or at
      the
      time of issuance, if later), and as if funds obtained thereby were used to
      purchase common stock at the average market price during the
      period.


13




Contingent
      liabilities





We
      estimate the amount of potential exposure we may have with respect to claims,
      assessments and litigation in accordance with SFAS No. 5. We are party
      to pending or threatened legal proceedings covering a wide range of matters
      in
      various jurisdictions. It is not always possible to predict the outcome of
      litigation, as it is subject to many uncertainties. Additionally, it is not
      always possible for management to make a meaningful estimate of the potential
      loss or range of loss associated with such litigation.





**3.
      Shareholders’ equity**





On
      May
      15, 2006, the Company issued to 10 stockholders an aggregate of 6,400,000
      additional shares of the Company's Common Stock as an equitable adjustment
      of
      the number of shares which the Company had agreed to issue to such persons
      pursuant to an Agreement and Plan of Merger entered into on November 11,
      2005.





On
      June
      8, 2006, we issued an aggregate of 80,000 shares of our Common Stock to two
      consultants pursuant to a Consulting Agreement. Management valued the stock
      issued at $1.00 per share based on the value of the services to be performed
      by
      the consultants under consulting agreement rather than the quoted price of
      our
      common stock during a period with little or no trading activity. The Company
      recorded a contra equity in additional paid-in capital for the value of the
      consulting services to be received and is amortizing that value as an expense
      over the five year requisite service period, which is accounted as $4,000 per
      quarter.





**4.
      Statutory Common Welfare Fund**





As
      stipulated by the Company Law of the People’s Republic of China (“PRC”) as
      applicable to Chinese companies with foreign ownership, net income after
      taxation can only be distributed as dividends after appropriation has been
      made
      for the following:


a.
            Making up cumulative prior years’ losses, if any b.
            Allocations
                to the “Statutory surplus reserve” of at least 10% of income after tax, as
                determined under PRC accounting rules and regulations, until the
                fund
                amounts to 50% of the Company’s registered capital;


c.
            Allocations
                of 5 -10% of income after tax, as determined under PRC accounting
                rules
                and regulations to the Company’s “Statutory common welfare fund”, which is
                established for the purpose of providing employee facilities and
                other
                collective benefits to the Company’s employees; and


d.
            Allocations
                to the discretionary surplus reserve, if approved in the shareholders’
                general meeting.





**5.
      Current vulnerability due to certain concentrations**





The
      Company’s operations are carried out in the People’s Republic of China.
      Accordingly, the Company’s business, financial condition and results of
      operations may be influenced by the political, economic and legal environments
      in the People’s Republic of China, by the general state of the People’s Republic
      of China’s economy. The Company’s business may be influenced by changes in
      governmental policies with respect to laws and regulations, anti-inflationary
      measures, currency conversions and remittance abroad, and rates and methods
      of
      taxation, among other things.





14


**Item
      2.**  **MANAGEMENT'S
      DISCUSSION AND ANALYSIS OR PLAN OF OPERATION**








*FORWARD-LOOKING
      INFORMATION - Management's Discussion and Analysis of Financial Condition and
      Results of Operations ("MD&A") includes forward-looking statements. All
      statements, other than statements of historical facts, included in this MD&A
      regarding the Company's financial position, business strategy and plans and
      objectives of management of the Company for future operations are
      forward-looking statements. These forward-looking statements rely on a number
      of
      assumptions concerning future events and are subject to a number of
      uncertainties and other factors, many of which are outside of the Company's
      control that could cause actual results to materially differ from such
      statements. While the Company believes that the assumptions concerning future
      events are reasonable, it cautions that there are inherent difficulties in
      predicting certain important factors, especially the timing and magnitude of
      technological advances; the prospects for future acquisitions; the possibility
      that a current customer could be acquired or otherwise be affected by a future
      event that would diminish their waste management requirements; the competition
      in the waste management industry and the impact of such competition on pricing,
      revenues and margins; uncertainties surrounding budget reductions or changes
      in
      funding priorities of existing government programs and the cost of attracting
      and retaining highly skilled personnel.*





Overview





Historically,
      the Company engaged in two lines of business: (a) the exploration and
      development of potential mining properties, and (b) the development, marketing
      and support of computer software products and services. In September 2004,
      the
      Company sold its computer business. Since September 2005, the Company has no
      longer been in the mining business due to its loss of all its contractual rights
      in certain mining properties in Spain.





The
      Company, through its wholly-owned subsidiary, DonTech Waste Services Inc.
      (formerly, Dalian Acquisition Corp.), a Delaware corporation (“DonTech”), holds
      90% of the capital stock of Dalian Dongtai Industrial Waste Treatment Co.,
      Ltd.,
      a corporation located in Dalian, the People’s Republic of China, or PRC
      (“Dongtai”). As a result of the acquisition, the Company is now engaged in the
      waste management business, and Dongtai currently represents the primary
      operations and business of the Company.





Dongtai
      was one of the first companies specializing in the centralized treatment of
      industrial waste in the PRC. Dongtai is engaged in the collection, treatment,
      disposal and recycle of all types of industrial wastes. It provides a wide
      range
      of waste treatment services to diversified customers. Dongtai uses industrial
      waste as a raw material to produce chemical and metallurgy products or
      incinerates, buries, or treats the waste.


15


Dongtai
      also provides waste disposal solutions, waste transportation services, realty
      management services and environmental pollution remediation services to its
      clients.





On
      March
      22, 2006, Dongtai and two other shareholders formed a subsidiary, Liaoyang
      Dongtai Industrial Waste Treatment Co., Ltd. (“Liaoyang Dongtai”) in the PRC, in
      which Dongtai holds a 60% ownership interest. Liaoyang Dongtai is also engaged
      in the collection, treatment, disposal and recycling of industrial waste. It
      is
      located in Liaoyang, where there is a concentration of large-scale chemical
      industrial enterprises. Industrial wastes generated by these enterprises are
      on
      the increase and have not, in our opinion, been properly been disposed. We
      believe that this presents a good business opportunity for the Company to
      meet this need.





On
      March 31, 2006, the Company filed with the Securities and Exchange Commission
      a
      definitive information statement on Schedule 14C in which it notified
      stockholders of its intention to make the following changes:





§
      to change the name of
      the Company to China Industrial Waste Management Inc. and apply for a new
      trading symbol of CIWT.OB.





§
      to authorize the Board of Directors to
      effect a one-for-one hundred (1:100) reverse stock split of the outstanding
      shares of Common Stock (the "Reverse Split").





§ to
      approve the Company's 2006
      Equity Incentive Plan.





The
      name
      change and the reverse stock split became effective on May 12, 2006.





**RESULTS
      OF OPERATIONS**





The
      following discussion should be read in conjunction with the consolidated
      financial statements and notes appear elsewhere in this quarterly report.





**Three
      Months Ended March 31, 2007 compared to the Three Months Ended March 31, 2006**





We
      generate revenue primarily from two sources, namely, fees charged to customers
      for waste collection, transfer, recycling and disposal services and that from
      the sale of recycled materials. We consider our collection and disposal
      operations and reclamation of reusable substances as our core
      business.





**Revenues.** The
      Company had $1,682,972 in revenues for the three months ended March 31, 2007,
      an
      increase of $131,535 or 8.47% over the Company’s revenues of $1,551,437 for the
      three months ended March 31, 2006. The increase in the three months ended March
      31, 2007 is attributable to an increase in sales of recycled material.


16


**Cost
      of Revenues.** The
      Company had cost of sales of $495,317 for the three months ended March 31,
      2007,
      an increase of $56,539 or 12.89% compared to cost of sales of $438,778 for
      the
      three months ended March 31, 2006. The increase in the three months ended March
      31, 2007 is attributable to the increase in revenue for the first quarter in
      2007.




**Total
      Operating Expenses.** Total
      operating expenses for the three months ended March 31, 2007 increased by
      $14,885 or 3.67% to $421,401 from $406,516 for the three months ended March
      31,
      2006, a increase of 3.67%. The increase in operating expenses was principally
      attributable to increased selling expenses as the Company expanded its operation
      locally as well as in areas outside of the city of Dalian, China.





**Foreign
      Currency Translation.** Foreign
      currency translation adjustments for the three months ended March 31, 2007
      decreased to $(52,178) from $81,826 for the three months ended March 31, 2006.
      This fluctuation is attributable to the revaluation of the Chinese currency
      against U.S .dollar.




**** **Net
      Income** .
      Net
      income for the three months ended March 31, 2007 increased by $57,421 to
      $692,918 from $635,497 for the three months ended March 31, 2006, an increase
      of
      9%. This increase is principally attributable to the increase in revenues for
      the Company in the 2007 quarter.




**Liquidity
      and Capital Resources.** We
      have
      financed our operations and met capital expenditure requirements primarily
      through cash provided by operating activities, trade credit and equity
      financing.




As
      of
      March 31, 2007, the Company had cash and cash equivalents of $3,626,913, as
      compared to $5,660,698 at December 31, 2006. As of March 31, 2007, the Company
      had working capital of $3,890,991, as compared to $6,109,054 as of December
      31,
      2006.




Net
      cash
      provided by operating activities totaled $417,008 for the three months ended
      March 31, 2007, as compared to cash provided by the operations of $607,339
      for
      the three months ended March 31, 2006.




We
      intend
      to use our available funds as working capital and to develop our current lines
      of business. We believe that our available funds will provide us with sufficient
      capital for at least the next twelve months; however, to the extent that we
      make
      acquisitions, we may require additional capital for the acquisition or for
      the
      operation of the combined companies. We cannot assure that such funding will
      be
      available.




**Critical
      Accounting Policies.** We
      have
      disclosed in Note 3 to our financial statements those accounting policies that
      we consider to be significant in determining our results of operations and
      our
      financial position which are incorporated by reference herein.





17


The
      preparation of financial statements requires us to make estimates and judgments
      that affect the reported amounts of assets, liabilities, revenue and expenses.
      We evaluate our estimates, including those related to bad debts, inventories
      and
      warranty obligations, on an ongoing basis. We base our estimates on historical
      experience and on various assumptions that we believe to be reasonable under
      the
      circumstances. These estimates and assumptions affect the reported amounts
      of
      assets and liabilities at the date of the financial statements and the reported
      amounts of revenue and expenses during the periods presented. The actual results
      may differ from these estimates under different assumptions or conditions.




The
      significant accounting policies which we believe are the most critical to aid
      in
      fully understanding and evaluating our reported financial results include the
      following:




**Revenue
      Recognition.** Revenue
      is recognized when services are rendered to customers when a formal arrangement
      exists, the price is fixed or determinable, the delivery is completed, no other
      significant obligations of the Company exist and collectibility is reasonably
      assured. Payments received before all of the relevant criteria for revenue
      recognition are satisfied are recorded as deferred sales.




**Property,
      Plant and Equipment.** Property
      and equipment are stated at cost. Expenditures for maintenance and repairs
      are
      charged to earnings as incurred; additions, renewals and betterments are
      capitalized. When property and equipment are required or otherwise disposed
      of,
      the related cost and accumulated depreciation are removed from the respective
      accounts, and any gain or loss is included in operations.




**Bad
      Debts.** The
      Company maintains reserves for potential credit losses on accounts receivable.
      Management reviews the composition of accounts receivable and analyzes
      historical bad debts, customer concentrations, customer credit worthiness,
      current economic trends and changes in customer payment patterns to evaluate
      the
      adequacy of these reserves. Terms of the sales vary from COD through a credit
      term of up to nine to twelve months. Reserves are recorded primarily on a
      specific identification basis




**OFF-BALANCE
      SHEET ARRANGEMENTS** Neither
      the Company nor any of its subsidiaries have engaged in any off-balance sheet
      transactions since its inception.




**Item
      3.**  **Controls and Procedures.**





At
      the
      conclusion of the period ended March 31, 2007, we carried out an evaluation,
      under the supervision and with the participation of our management, including
      our Chairman and Chief Executive Officer and Chief Financial Officer, of the
      effectiveness of the design and operation of our disclosure controls and
      procedures. Based upon that evaluation, the Chairman and
      Chief Executive Officer and Chief Financial Officer concluded that our
      disclosure controls and procedures were effective in alerting them in a timely
      manner to information relating to the Company
      required to be disclosed in this report. There have been no significant changes
      in our internal controls over financial reporting that occurred during our
      most
      recent fiscal quarter or any subsequent interim period that have materially
      affected, or are reasonably likely to materially affect our internal controls
      over financial reporting.  18


**PART
      II**





**Item
      1.**  **Legal
      Proceedings.**





In
      the
      three months ended March 31, 2007 there were no material developments in any
      of
      the matters disclosed in Item 3 of the Company’s Annual Report on Form 10-KSB
      for the fiscal year ended December 31, 2006.





**Item
      2. Unregistered Sales of Equity Securities and Use of
      Proceeds.**





None.





**Item
      3.**  **Defaults
      Upon Senior Securities.**





None.





**Item
      4.**  **Submission
      of Matters to a Vote of Security Holders.**





None.





**Item
      5.**  **Other
      Information.**





None.





**Item
      6.**  **Exhibits**





(a)  Exhibits





31.1
            -
                Certification of Chief Executive Officer and Chief Financial Officerpursuant
                to Section 302 of the Sarbanes-Oxley Act of
                2002.





32.1
            -
                Certification of Chief Executive Officer and Chief Financial Officerpursuant
                to Section 906 of the Sarbanes-Oxley Act of
                2002.





19





SIGNATURES





Pursuant
      to the requirements of the Securities Act of 1934, the Registrant has duly
      caused this report to be signed on its behalf by the undersigned there unto
      duly
      authorized.






**CHINA INDUSTRIAL WASTE MANAGEMENT
              INC.**Date: May
              17,
              2007
            By:
            /s/ Dong
              JinqingDong
              Jinqing
              Chief
                Executive Officer






20