Owing to the convenience and price advantages, polyethylene terephthalate (PET) bottles have been widely used in daily life. This leads to a substantial number of waste PET bottles. Because of the lack of corresponding management policies in developing countries, PET bottles have entered the informal collection and recycling sectors in large quantities, causing serious environmental pollution. In China, how to regulate the formal collection and achieve optimal performance of a PET bottle recycling system with policy implementation methods are still being explored. This study constructs a dynamic recycling system of waste PET bottles for the production-consumption, consumption-collection, and collection-recycling subsystems that regulate the formal recycling of PET bottles through policies. The deposit-refund system, mandatory policy and tax refund system were used as the standard recycling policy in a simulation, and comprehensive performance changes were compared before and after the policy simulation. The results indicate that the comprehensive performance (basic scenario) of the PET bottle recycling system is an average of 5.42 billion CNY. With the policy mix scenario, it reached to 6.51 billion CNY, and the formal collection rate increased to 55.8%. Compared with the basic scenario, the comprehensive performance of the policy mix scheme increased by 20%, which is beneficial to the operations of the formal collection and recycling sectors and increases the production vitality of the formal PET recycling industry.