A Circular Economy is an economy which balances economic development with environmental and resources protection. It puts emphasis on the most efficient use of and recycling of its resources and environmental protection. A Circular Economy features low consumption of energy, low emission of pollutants and high efficiency . It involves applying Cleaner Production in companies, eco-industrial park development and in integrated resource-based planning for development in industry, agriculture and urban areas. The Circular Economy was adopted by the Chinese Government in the last five year plan as the development model for China to follow.

Why adopt a Circular Economy?

With a fast growing population reaching 1.8 billion by 2050 demanding for a better life: jobs, higher income as well as better environment to live in, the pressing need for sustainable development has become a high priority on the agenda of the central government.

Over the past 25 years, while China has enjoyed an average annual growth rate of 8.7 per cent, the country's economic achievements have been largely gained through a high consumption of resources and ecological degradation (polluted rivers, cleared mountains, depleted soil, and coal and sites full of toxic materials).
To meet the needs for development while restoring the health of ecosystems, China must follow a development different from the industrialization model of the West. The Circular Economy is one response to this situation.
How to achieve a Circular Economy?

The National Development and Reform Commission (NDRC) in China is leading the Circular Economy strategy at the national level. Under the NDRC's guidance, a circular economy will be achieved through a score of legislative, political, technical and financial measures. Many of these are powerful policy instruments, such as government regulations, subsidies and tax breaks.

The main barriers to implement a circular Economy include:

• Lack of knowledge and experience of the local officials and citizens on how to move from theory to on-the-ground implementation of the Circular Economy approach
  
  
• Insufficient environmental policies, weak planning guidelines, and inadequate coordination between different parts of the authorities and other sectors in society.