A Development Strategy for the Circular Economy in China

Haifeng Huang, Chao Chen, Weixin Zhang, Michael Nazir Shaikh, Shuhai Wen, Huiqiang Cheng

China's Research Center for Economic Transition of Beijing University of Technology

Research Department of Jiangsu Province

Keywords: Circular Economy; Resources Utilization; Ecologic Industry

Abstract:

     China’s fast growing economy is now accompanied by the over-exploitation of its natural energy resources. China’s current development model relies on a high rate of energy-consumption. This is also accompanied by high rates of pollution that has dire consequences for the country’s natural environment. The current model needs to be modified in order to address this problem and the ‘circular economic model’ could offer a solution. The concept of the “circular economy” is an innovative economic model that works to maintain economic growth without the negative impacts on the natural environment. Elements of this model have already been incorporated in other countries and China should refer to the experiences of Western countries on circular economic development. Germany, Japan and the United States among others employ varying forms of legislation in regard to circular economic development and many examples of policy implementation now exist. Current global examples of effective circular economic policy include inter alia: government preferential policy, taxation preferential policy, governmental pre-emption rights, charging policy and taxation policy. The purpose of this study is to construct a closed feedback circular economic development model of “resource – product – resource reproduction” that is applicable to China’s economy. This model will inject technical innovation into a system that benefits circular economic development. In addition a legal framework must be in place to promote a circular economy and environmental protection. Furthermore, it is necessary to develop new policies which promote favorable conditions for circular economic development that stimulates industrial ecology development, facilitates the construction of an industrial ecologic system and encourage the development of a support system for the circular economy and ecological industrial technologies.

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