China in transition towards a circular economy: from policy to practice

Abstract

PurposeThe purpose of this paper is to examine China's approach to circular economy (CE) and investigate how the foreign concept of CE has been turned into a national strategy for implementation in production, circulation and consumption. This study aims to highlight the Chinese characteristics in the implementation of CE from central to local levels including the “trial and test” by pilot schemes and the role of local governments in CE transformation of industrial parks and in building CE cities. Based on what has been achieved, this paper aims to identify the gaps to be filled in the next stage of CE implementation.Design/methodology/approachThis paper engages in critical analysis of state policies, plans, laws and regulations and case studies of Suzhou New District and Shanghai city in the building CE-oriented industrial park and CE city, respectively.FindingsChina has taken a top-down approach to CE characterised by strong government involvement in both policy and plan making and implementation at local levels. The government’s financial investment and administrative assistance proved to be crucial in the early stage of CE implementation to close the loop at industrial parks and in cities. In comparison, participation by enterprises and individuals is still weak and limited, which should be the focus of the next stage of CE implementation.Originality/valueThere is an absence of legal literature that studies circular economy in China. This paper fills the gap by examining the development of CE law and policy as well as CE implementation at local levels from industrial parks to cities.