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| Utah                                                                            |   | 81-0674073                                            |
|---------------------------------------------------------------------------------|--------|-------------------------------------------------------|
| (State                  or other jurisdiction of incorporation or organization) |   | (I.R.S.                  Employer Identification No.) |
|                                                                            |   |                                                  |

| 175                  East 400 South Suite 900, Salt Lake City, Utah | 84111                       | 801-531-0404                                 |
|---------------------------------------------------------------------|-----------------------------|----------------------------------------------|
| (Address                  of principal executive offices)           | (Zip                  Code) | (Issuer's                  telephone number) |

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**SCRAP        CHINA CORPORATION**

**FORM        10-QSB**

**QUARTER        ENDED **
**DECEMBER        31, 2006**

**TABLE        OF CONTENTS**

|                                                                                                                                                                                                                                                                                               |                                                                                                            | **Page** |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------|----------|
| **PART                  I - FINANCIAL INFORMATION**                                                                                                                                                                                                                                                |                                                                                                            |
|                                                                                                                                                                                                                                                                                               |                                                                                                            |     |
| Item                  1.                                                                                                                                                                                                                                                                           | Financial                  Statements                                                                           | 3        |
|                                                                                                                                                                                                                                                                                               |                                                                                                            |     |
| Condensed                  Balance Sheets - December 31, 2006 and June 30, 2006                  (Unaudited)                                                                                                                                                                                       | 3                                                                                                               |
|                                                                                                                                                                                                                                                                                               |                                                                                                            |     |
| Condensed                  Statements of Operations for the Three and Six Months Ended December                  31,                  2006 and December 31, 2005 and for the period from June 15, 2005                  (Date of                  Inception) Through December 31, 2006 (Unaudited) | 4                                                                                                               |
|                                                                                                                                                                                                                                                                                               |                                                                                                            |     |
| Condensed                  Statements of Cash Flows for the Six Months Ended December 31,                  2006 and                  December 31, 2005 and for the period from June 15, 2005 (Date of                  Inception) Through December 31, 2006 (Unaudited)                            | 5                                                                                                               |
|                                                                                                                                                                                                                                                                                               |                                                                                                            |     |
| Notes                  to Condensed Financial Statements                                                                                                                                                                                                                                           | 6                                                                                                               |
|                                                                                                                                                                                                                                                                                               |                                                                                                            |     |
| Item                  2.                                                                                                                                                                                                                                                                           | Management’s                  Discussion and Analysis                                                     | 7        |
|                                                                                                                                                                                                                                                                                               |                                                                                                            |     |
| Item                  3.                                                                                                                                                                                                                                                                           | Controls                  and Procedures                                                                        | 7        |
|                                                                                                                                                                                                                                                                                               |                                                                                                            |     |
|                                                                                                                                                                                                                                                                                               |                                                                                                            |     |
| **PART                  II - OTHER INFORMATION**                                                                                                                                                                                                                                                   |                                                                                                            |
|                                                                                                                                                                                                                                                                                               |                                                                                                            |     |
| Item                  1.                                                                                                                                                                                                                                                                           | Legal                  Proceedings                                                                              | 8        |
|                                                                                                                                                                                                                                                                                               |                                                                                                            |     |
| Item                  2.                                                                                                                                                                                                                                                                           | Changes                  in Securities and Small Business Issuer Purchase of Equity                  Securities | 8        |
|                                                                                                                                                                                                                                                                                               |                                                                                                            |     |
| Item                  3.                                                                                                                                                                                                                                                                           | Default                  Upon Senior Securities                                                                 | 8        |
|                                                                                                                                                                                                                                                                                               |                                                                                                            |     |
| Item                  4.                                                                                                                                                                                                                                                                           | Submission                  of Matters to a Vote of Security Holders                                            | 8        |
|                                                                                                                                                                                                                                                                                               |                                                                                                            |     |
| Item                  5.                                                                                                                                                                                                                                                                           | Other                  Information                                                                              | 8        |
|                                                                                                                                                                                                                                                                                               |                                                                                                            |     |
| Item                  6.                                                                                                                                                                                                                                                                           | Exhibits                  and Reports on Form 8-K                                                               | 8        |
|                                                                                                                                                                                                                                                                                               |                                                                                                            |     |
| Signatures                                                                                                                                                                                                                                                                                         | 9                                                                                                               |

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**PART        I - FINANCIAL INFORMATION**

**ITEM        1. FINANCIAL STATEMENTS**

**SCRAP        CHINA CORPORATION**

**(A        Development Stage Company)**

**CONDENSED        BALANCE SHEETS**

**(UNAUDITED)**

|                                                                                                                                                                                              |   | **December                  31,** |     | **June                  30,** |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|----------|-------------------------------|--------|
|                                                                                                                                                                                              |   | **2006**                          |     | **2006**                      |   |
| **ASSETS**                                                                                                                                                                                        |   |                              |     |                          |   |
| **Current                  Assets**                                                                                                                                                               |   |                              |     |                          |   |
| Cash                                                                                                                                                                                              |   | $                                 | 417      |                          | $      | 450 |   |
| Prepaid                  expenses                                                                                                                                                                 |   |                              | 5,000    |                          |   | - |   |
|                                                                                                                                                                                              |   |                              |     |                          |   |   |   |
| **Total                  Assets**                                                                                                                                                                 |   | $                                 | 5,417    |                          | $      | 450 |   |
|                                                                                                                                                                                              |   |                              |     |                          |   |   |   |
| **LIABILITIES                  AND STOCKHOLDERS' DEFICIT**                                                                                                                                        |   |                              |     |                          |   |   |   |
| **Current                  Liabilities**                                                                                                                                                          |   |                              |     |                          |   |   |   |
| Accrued                  liabilities                                                                                                                                                              |   | $                                 | 2,750    |                          | $      | 5,000 |   |
| Payable                  to related party                                                                                                                                                         |   |                              | 110,956  |                          |   | 87,116 |   |
|                                                                                                                                                                                              |   |                              |     |                          |   |   |   |
| **Total                  Current Liabilities**                                                                                                                                                    |   |                              | 113,706  |                          |   | 92,116 |   |
|                                                                                                                                                                                              |   |                              |     |                          |   |   |   |
| **Stockholders'                  Deficit**                                                                                                                                                        |   |                              |     |                          |   |   |   |
| Common                  shares - par value $0.001 per share; 250,000,000 shares authorized;                  7,710,843 and 7,710,843 shares issued and outstanding,                  respectively |   |                              | 7,711    |                          |   | 7,711 |   |
| Additional                  paid-in capital                                                                                                                                                       |   |                              | 2,289    |                          |   | 2,289 |   |
| Deficit                  accumulated during development stage                                                                                                                                     |   |                              | (118,289 | )                             |   | (101,666 | ) |
|                                                                                                                                                                                              |   |                              |     |                          |   |   |   |
| **Total                  Stockholders' Deficit**                                                                                                                                                  |   |                              | (108,289 | )                             |   | (91,666 | ) |
|                                                                                                                                                                                              |   |                              |     |                          |   |   |   |
| **Total                  Liabilities and Stockholders' Deficit**                                                                                                                                  |   | $                                 | 5,417    |                          | $      | 450 |   |

----

**SCRAP        CHINA CORPORATION**

**(A        Development Stage Company)**

**CONDENSED        STATEMENTS OF OPERATIONS**

**(UNAUDITED)**

|                                                            |   | **For                    the Three Months Ended**December 31, |      | **For                    the Six Months Ended**December 31, |   | **For                      the period from**June 15, 2005 (date of inception) through                      December 31, |   |
|-----------------------------------------------------------------|--------|---------------------------------------------------------------|-----------|-------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------|--------|
|                                                            |   | **2006**                                                      |      | **2005**                                                    |   | **2006**                                                                                                                |   | **2005** |   | **2006** |   |
| **Sales**                                                       |   | $                                                             | -         |                                                        | $      | -                                                                                                                       |   | $ | - |   | $ | - |   | $ | - |   |
|                                                            |   |                                                          |      |                                                        |   |                                                                                                                    |   |   |   |   |   |   |   |   |   |   |
| **Operating                  Expenses**                         |   |                                                          |      |                                                        |   |                                                                                                                    |   |   |   |   |   |   |   |   |   |   |
| Selling,                  general and adminstrative expenses    |   |                                                          | 13,194    |                                                        |   | 17,493                                                                                                                  |   |   | 16,623 |   |   | 54,798 |   |   | 118,289 |   |
|                                                            |   |                                                          |      |                                                        |   |                                                                                                                    |   |   |   |   |   |   |   |   |   |   |
| **Total                  Operating Expenses**                   |   |                                                          | 13,194    |                                                        |   | 17,493                                                                                                                  |   |   | 16,623 |   |   | 54,798 |   |   | 118,289 |   |
|                                                            |   |                                                          |      |                                                        |   |                                                                                                                    |   |   |   |   |   |   |   |   |   |   |
| **Net                  Loss**                                   |   | $                                                             | (13,194   | )                                                           | $      | (17,493                                                                                                                 | )      | $ | (16,623 | ) | $ | (54,798 | ) | $ | (118,289 | ) |
|                                                            |   |                                                          |      |                                                        |   |                                                                                                                    |   |   |   |   |   |   |   |   |   |   |
| **Basic                  and Diluted Net Loss per Share**       |   | $                                                             | (0.00     | )                                                           | $      | (0.00                                                                                                                   | )      | $ | (0.00 | ) | $ | (0.00 | ) |   |   |   |
|                                                            |   |                                                          |      |                                                        |   |                                                                                                                    |   |   |   |   |   |   |   |   |   |   |
| **Weighted-Average                  Common Shares Outstanding** |   |                                                          | 7,710,843 |                                                        |   | 10,000,000                                                                                                              |   |   | 7,710,843 |   |   | 10,000,000 |   |   |   |   |

----

**SCRAP        CHINA CORPORATION**

**(A        Development Stage Company)**

**CONDENSED        STATEMENTS OF CASH FLOWS**

**(UNAUDITED)**

|                                                           |   | **For                  the Six Months Ended** |    | **For                    the Period From**June 15, 2005 (date of inception)                    Through |   |
|----------------------------------------------------------------|--------|-----------------------------------------------|---------|--------------------------------------------------------------------------------------------------------|--------|
|                                                           |   | **December                  31,**             |    | **December                  31,**                                                                      |   |
|                                                           |   | **2006**                                      |    | **2005**                                                                                               |   | **2006** |   |
| **Cash                  Flows from Operating Activities:**     |   |                                          |    |                                                                                                   |   |   |   |
| Net                  loss                                      |   | $                                             | (16,623 | )                                                                                                      | $      | (54,798 | ) | $ | (118,289 | ) |
| Changes                  in assets and liabilities:            |   |                                          |    |                                                                                                   |   |   |   |   |   |   |
| Prepaid                  expenses                              |   |                                          | (5,000  | )                                                                                                      |   | 4,000 |   |   | (5,000 | ) |
| Accrued                  liabilities                           |   |                                          | (2,250  | )                                                                                                      |   | 1,000 |   |   | 2,750 |   |
| Payable                  to related party                      |   |                                          | 23,840  |                                                                                                   |   | 49,798 |   |   | 110,956 |   |
|                                                           |   |                                          |    |                                                                                                   |   |   |   |   |   |   |
| **Net                  Cash Used in Operating Activities**     |   |                                          | (33     | )                                                                                                      |   | - |   |   | (9,583 | ) |
|                                                           |   |                                          |    |                                                                                                   |   |   |   |   |   |   |
| **Cash                  Flows from Investing Activities:**     |   |                                          | -       |                                                                                                   |   | - |   |   | - |   |
|                                                           |   |                                          |    |                                                                                                   |   |   |   |   |   |   |
| **Cash                  Flows from Financing Activities:**     |   |                                          |    |                                                                                                   |   |   |   |   |   |   |
| Proceeds                  from sale of common stock            |   |                                          | -       |                                                                                                   |   | - |   |   | 10,000 |   |
|                                                           |   |                                          |    |                                                                                                   |   |   |   |   |   |   |
| **Net                  Cash Provided by Financing Activities** |   |                                          | -       |                                                                                                   |   | - |   |   | 10,000 |   |
|                                                           |   |                                          |    |                                                                                                   |   |   |   |   |   |   |
| **Net                  Change in Cash**                        |   |                                          | (33     | )                                                                                                      |   | - |   |   | 417 |   |
|                                                           |   |                                          |    |                                                                                                   |   |   |   |   |   |   |
| **Cash                  at Beginning of Period**               |   |                                          | 450     |                                                                                                   |   | 168 |   |   | - |   |
| **Cash                  at End of Period**                     |   | $                                             | 417     |                                                                                                   | $      | 168 |   | $ | 417 |   |

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**SCRAP          CHINA CORPORATION**

**NOTES          TO CONDENSED FINANCIAL STATEMENTS**

**DECEMBER          31, 2006**

**(UNAUDITED)**

**NOTE          1-ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES**

**Organization          and Nature of Operations**
***—***

**Basis          of Presentation —**

**Business          Condition**
*** ***

**NOTE          2-PAYABLE TO RELATED PARTY**

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**ITEM          2 - MANAGEMENT’S DISCUSSION AND ANALYSIS OR PLAN OF          OPERATIONS**

**Plan          of Operation**

|   | 1. | General                    Administration for Quality Supervision, Inspection and Quarantine                    -                    AQSIQ |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | Compulsory                    Certificate - CCC |
|--------|----|-------------------------------------------------|

**Off-Balance          Sheet Arrangements**

**ITEM          3 - CONTROLS AND PROCEDURES**

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**PART            II - OTHER INFORMATION**

| **ITEM                      1.** | **LEGAL                      PROCEEDINGS** |
|----------------------------------|--------------------------------------------|

| **ITEM                      2.** | **CHANGES                      IN SECURITIES AND SMALL BUSINESS ISSUER PURCHASE OF EQUITY                      SECURITIES** |
|----------------------------------|-----------------------------------------------------------------------------------------------------------------------------|

| **ITEM                      3.** | **DEFAULT                      UPON SENIOR SECURITIES** |
|----------------------------------|---------------------------------------------------------|

| **ITEM                      4.** | **SUBMISSION                      OF MATTERS TO A VOTE OF SECURITY                      HOLDERS** |
|----------------------------------|---------------------------------------------------------------------------------------------------|

| **ITEM                      5.** | **OTHER                      INFORMATION** |
|----------------------------------|--------------------------------------------|

| **ITEM                      6.** | **EXHIBITS                      AND REPORTS ON FORM 8-K** |
|----------------------------------|-----------------------------------------------------------|

**Index            to Exhibits**

**Reports            on Form 8-K**

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**SIGNATURES**

|                                  | Scrap                      China Corporation                                                                                                            |
|---------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                  |                                                                                                                                                    |
|                                  |                                                                                                                                                    |
|                                  |                                                                                                                                                    |
|                                  |                                                                                                                                                    |
|                                  |                                                                                                                                                    |
| January                      31, 2007 | /s/                      Paul Roszel Paul                      Roszel, President and Chairman of the Board of                      Directors            |
|                                  |                                                                                                                                                    |
|                                  |                                                                                                                                                    |
|                                  |                                                                                                                                                    |
|                                  |                                                                                                                                                    |
|                                  |                                                                                                                                                    |
| January                      31, 2007 | /s/                      Richard IvanovickRichard                        Ivanovick, C.A., Chief Financial and Accounting                        Officer |

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