The circular economy in China

Abstract

This article makes an attempt to answer the three questions of why China is devoting its full effort to promoting a circular economy, what a circular economy is, and how to implement a circular economy in China. The evolutionary process of a circular economy in China, from introduction of the concept and the relevant actions of national decision making to demonstration of the system nationwide, has taken only around 6 years, with strong encouragement from politicians and the urgent need to cope with environmental pollution and a severe shortage of natural resources. The circular economy in China is now being actively implemented at three levels: enterprises, eco-industrial parks, and regions. The consolidated theoretical bases of ecology and economics have helped the circular economy to define its position as a new economic model to effectively resolve the problems of resources and the environment. In this regard, material flow management is naturally a unique planning and management method for implementation of a circular economy, and eco-efficiency is a good indicator to measure circular economic activities. Of particular significance has been initiation of the legislative process for the Circular Economy Law, which is among a number of initiatives developing core policies for a circular economy in China. Stringent enforcement of a set of policies for energy saving and pollution abatement nowadays in China will certainly create an enabling environment for the development of a circular economy.