To achieve the principles of reduction, resource, and harmless disposal of domestic waste, the circular economy prolongs the life cycle of resources by converting waste into renewable resources through sorting, recycling, and other ways. There are still noticeable problems in domestic waste recycling in China, such as poor waste classification and low recovery rate of resource-based waste with no or low economic value. In this paper, Van Waden’s seven-dimensional classification model of policy networks is adopted to analyze and compare domestic waste recycling (DWR) management modes at home and abroad. The domestic waste recycling mode of “pipeline collection and vehicle transfer” based on China’s national conditions is proposed. Then, the planning model of the domestic waste recycling network is further built. Taking Xiaolan Town, Zhongshan City as an example, the pipeline laying design and route planning of the pneumatic transportation and collection system for material in the new recycling mode are optimized. The examples verify the superiority of the greedy dropping heuristic algorithm in solving large-scale recycling network planning problems. This paper is of great significance to improve the recycling of renewable resources in domestic waste and realize the circular economy.