Analysis of China's Circular Economy Policy

Accelerate the establishment of a circular economy standard system that is compatible with the recycling of waste paper, waste plastics, and other materials, and improve the standards and labeling of energy-saving, water-saving, and recycled products.

In 2005, the State Council issued a guiding document for the development of circular economy in China - "Several Opinions on Accelerating the Development of Circular Economy". The Outline of the Eleventh Five Year Plan regards the development of circular economy as a major strategic task for the Eleventh Five Year Plan. The State Council held executive meetings and teleconferences to conduct special research and deployment on the development of circular economy. The National Development and Reform Commission organized the National Circular Economy Work Conference, made comprehensive arrangements for the development of circular economy, and, together with relevant departments such as the State Environmental Protection Administration, organized and implemented national circular economy pilot projects. The National Circular Economy Pilot Work Conference was also held, summarizing the development models of circular economy in various industries. The 17th National Congress of the Communist Party of China listed resource and environmental issues as the primary problems facing China, and proposed the goal of forming a large-scale circular economy and building an ecological civilization, further improving the development environment of the recycled metal industry.

Under the organizational leadership of the Finance and Economic Commission and the Environmental Resources Commission of the National People's Congress, the newly revised Energy Conservation Law has been officially promulgated, and the legislative work of the Circular Economy Law is progressing smoothly. The supporting regulations related to the development of circular economy are being formulated urgently, and the Regulations on the Management of Waste Electronic and Electrical Appliance Recycling and Treatment are about to be promulgated. The National Development and Reform Commission and relevant departments have revised and adjusted the "Catalogue of Comprehensive Utilization of Resources" and implemented the "Management Measures for the Recognition of Comprehensive Utilization of Resources Encouraged by the State". Treasury bond and investment within the central budget have increased support for key projects to develop the circular economy. In 2007, the central government added 7 billion yuan of energy-saving incentive funds to support enterprises' energy-saving technology transformation through the "reward instead of subsidy" approach. In 2008, the central government allocated 27 billion yuan in special funds to support the promotion of energy conservation and emission reduction work. The State Council has issued a notice on establishing a system for mandatory government procurement of energy-saving products, and relevant departments have issued opinions on the implementation of government procurement of environmentally labeled products. The continuous improvement of relevant policies has promoted the development of circular economy.

To accelerate the development of circular economy, it is necessary to thoroughly implement the spirit of the 17th National Congress of the Communist Party of China, take the scientific outlook on development as guidance, aim to reduce resource consumption, waste emissions, and improve resource productivity, take technological and institutional innovation as driving forces, strengthen legal construction, improve policy mechanisms, establish ecological civilization concepts, gradually establish a legal and regulatory system, policy support system, technological innovation system, and effective incentive and restraint mechanism to promote the development of circular economy, and form a working mechanism that is promoted by the government, implemented by enterprises, and jointly participated by the whole society.