CESC CONTRIBUTION
for the
4th EU-China Round Table
on
Recycling Industries
_____________
Rapporteur: Zhu Tan
_____________
Circular Economy and Renewable Resource Industry in China
By Mr. Zhu Tan, Vice President, Economic and Social Council of Tianjin;
Director, Environment and Social Development Research Center, NanKai University
1.
Circular economy in China
1.1The meaning and principles of circular economy in China
China’s economy has developed fast since the 1980s with the average annual growth rate of GDP
reaching over 9.0%. The GDP in 2006 is 10 times more than that in 1978. The rapid economic growth
improves people’s living standards greatly and the huge market demand also impulses the world’s
economy. Although China is rich in resources and energy, the per capita amount is no more than half the
average of the entire world. The environmental problems become increasingly prominent. Meanwhile
the resources are used inefficiently and the renewable rate is low. The contradiction between the
high-speed economic development and indigent resources is relatively sharp, which results in the
serious shortage of the resource and the fragility of the environmental carrying capacity. It is now the
significant task to explore ways to change the extensive development mode as “high input, high
consumption and high pollution”, so as to achieve the sustainable development on both economy and
society. Therefore, learning from the advanced experiences throughout the world, changing the
economic development mode and developing the circular economy are the critical strategies in China.
The concept of circular economy took shape in the 1960s in the United States. The term of circular
economy appeared in China in the middle of 1990s and it has been explained by scholars from the angles
of resource utilization, environmental protection, technology paradigm and economy’s growth. Aiming
at raising the efficiency of resource utilization and improving the environmental quality, circular
economy emphasizes using resources efficiently and circularly by keeping to the ecological and
economic rules and following the principles of reducing, reusing, and recycling. Circular economy
combines cleaner production, comprehensive utilization of resources, eco-design and sustainable
consumption. It stresses the accordance between economic development and environmental protection
while improving the efficiency of resource use and balances the efficiency and fairness of development.
It is a multi-win model to realize the objective of economy, environment and society development.
The principles of circular economy: (1) Reduce: to reduce the resource consumption and waste
production as much as possible in the course of production and service so as to improve the efficiency of
resource use. (2) Reuse: to use products for more than once through repairing and renovating, to extend
the circle of life as long as possible and to prevent products from being garbage prematurely. (3)
Recycle: to change the waste into resource to the fullest extent.
1.2 The strategic emphasis and three levels of the practice of circular economy in China
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For the reason of national conditions, background and objectives of the circular economy
development, nowadays China’s circular economy development strategy focuses on one industrial chain
of renewable resource, two domains, and three industrial systems, which means the “321” model. “3”
stands for 3 industrial systems, which are eco-industrial system, eco-agriculture system and eco-service
system; “2” stands for two domains: production and consumption; “1” stands for industrial chain of
renewable resource, which is the reuse of waste and innoxious disposal industrial chain(It is called the
venous industry in Japan).
In the practice of circular economy, China carries it out at the enterprise level, the eco-industrial park
level and the social level. These three levels go forward one by one from small to large. The former is the
basis of the latter, while the latter is the platform of the former. The cycle of three levels constitutes the
three basic types of circular economy mode, namely eco-enterprise, eco-industry and the social system
of circular economy.
The enterprise level: eco-enterprise is the circular economy’s basic manifestation in the micro-level.
The eco-enterprise takes the micro-cycle of internal material and energy as the principal part, and the
core is the cleaner production technology. According to the concept of the eco-efficiency, implementing
cleaner production at the enterprise level is to reduce consumption of the material and energy during
production and services, reduce emissions of toxic substances, strengthen material cycle, utilize
renewable resources sustainably and maximally, improve products durability and improve intensity of
products and the service. It includes saving raw materials and energy, using less toxic materials,
utilizing less or no waste manufacturing technologies and equipments, producing no toxic and
innocuous semifinished products by simple and reliable operation and perfect management, reducing
toxicity before emissions and waste departed from production process and reducing the negative impact
on human and environment throughout the production and consumption cycle. In addition, products do
not contain factors harming human health and ecological environment and are easy to be recovered,
reused, regenerated and degrade.
The eco-industrial park level: eco-industrial park is the basic manifestation of circular economy at
meso-level. Based on the carrying capacity of ecosystem, eco-industrial park is a new form of industrial
organization designed by the principles of industrial ecology. By the ecological design of material flow
and energy in the industrial park, eco-industrial chain is formed by two or more eco-enterprises of
industrial relevancy in a specific or virtual industrial park. It forms the symbiosis network of sharing
resources and exchanging by-products among the enterprises by which the wastes of upstream
enterprises become the resources of the downstream ones. The relationship between metabolism and
symbiosis of enterprises is formed by material integration, energy integration and information
integration. The eco-industrial park is the gathering place for eco-industry realizing the circulation of the
material use, the maximization of the energy use and the minimization of the waste discharge by the
cleaner production inside of the enterprise and the waste exchange among the enterprises. There is a
closed production chain in eco-industrial park, which is different from previous opening flow of
material and energy. There are not only industries utilizing natural resources and raw materials to
process and develop products and discharge wastes, but also industries conducting wastes collection,
transportation, decomposition, classification and final disposal with the core of changing the waste into
reusable resources and changing the renewable resources to products. The circulating materials and
energy in the closed industrial chain are the same as the blood flows in the artery and vein, which two
industries compose the positive cycle of resources, environment and the economic development.
The social level: Circular economy mode based on the social level is the manifestation of circular
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economy at the macro level, which is larger scale and higher level on the basis of the eco-industry and
eco-industrial park. In accordance with the carrying capacity of ecosystem in larger areas required, it
organizes production and consumption by using the principles of eco-economics and systemic
engineering approaches and realizes the recycle of the materials and reuse of energy in production and
consumption process by the reuse of wastes. It achieves the optimal resource allocation, the lowest
material, energy consumption and the minimum waste discharge to realize social benefits, economic
benefits and environmental benefits in the progress of the concerted and stable development of the social
economy.
1.3 The characteristics of circular economy development in China
As differences exist among the national conditions, the development stage of the social economy, the
development level, the tradition of science, the technology, the culture, the institutions, the system and
the mechanism, there are great differences in the understanding and practices of circular economy
among countries. A certain of differences between China and other countries are as follows .
(1) Background
After developed countries solved the industrial pollution and part of living pollution gradually, a
large number of wastes caused by post-industrial and consumer-oriented social structure hindered the
environmental protection and sustainable development. In this context, the principles and practices of
circular economy came into existence. The “3R” principles and the eco-efficiency improvement are
considered of the perspective of circular economy. Nowadays, China is in the middle stage of
industrialization, the rate of investment is high, resource-intensive industries improve quickly,
especially the way of extensive economic growth doesn’t change fundamentally, the waste of resources
is large and pollutant emissions per unit value are high. So the circular economy in China must focus on
both aspects: on the one hand, we should improve the utilization rate of resources from resources
exploitation, productions and consumptions; on the other hand, reducing the production of waste
relevantly at the same time of reducing the resources consumption. The development of circular
economy in our country is the organic unity of the eco-industry and the pollution control
industrialization, the coordinated development of the arterial and venous industry. Now at our lower
seedtime, seeking for the comprehensive and fundamental strategy is the key to the solution of the
complicated ecological problems.
(2) The conception and the object
The circular economy in China is a conception of economic mode, rather than the conception of
environmental management in some other countries. China hope to change the economic mode from
fountainhead and whole course to reduce resource consumption and pollution. China also wants to
achieve the win-win results of economy and environment by circular economy instead of economy
without cycle or cycle without economy. Therefore, unlike some other countries, the department in
charge of circular economy is called National Development and Reform Commission rather than the
environmental management department.
As for the object, the circular economy in China not only focuses on the solid waste disposal,
waste-economy and 3R principles, but also focuses on all of the scarce resources related to the China’s
economic development, including water resources, land resources, energy resources, forest resources
and wastes. To a certain extent, it is very urgent and significant to develop circular economy which
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focuses on the water resources, land resources, energy and other resources consumptions and pollution
control.
(3) Development model
Developed countries develop the circular economy from the angle of waste in the consumption
field, extend it to the production field and ultimately aim at changing the social-economic development
model of “mass production, mass consumption and mass waste”. For example, the circular economy in
Germany was originated from the waste-economy and extended to the resource recycling in production
field. The circular economy in Japan also started from the waste problem, aiming to change the
socio-economic development model. From our current understanding and practice of circular economy
in China, the direct purpose of developing circular economy is to transform the traditional model of
economic growth, to take a new way to bring about industrialization, to solve problems of compound
environmental pollution and to ensure the realization of building the well-off society. Consequently, the
practice of China’s circular economy started from the industry field and its intension and extension have
gradually expanded to three dimensions: cleaner production (small cycle), eco-industrial park (medium
cycle) and eco-communities (large cycle).
1.4 Institutional Construction of circular economy in China
1.4.1 Laws, regulations and policies
The environmental protection in China started in the 1970s. After the UNCHE (United Nations
Conference of the Human Environment) in 1972, the government of China realized the significance of
environmental protection to the social and economic development. In 1973 China held the 1st National
Environmental Protection Conference and set about formulating environmental protection guidelines
and policies. In 1979, the Environmental Protection Law of the People’s Republic of China (for Trial
Implementation) was enacted, which became the fundamental environmental protection law at that time.
Then the 2nd National Environmental Protection Conference was held in 1983, which made
environmental protection a basic national policy. The importance of environmental protection has been
raised to the unprecedentedly high level. Based on the 10 years’ lessons and the practical experience of
Environmental Protection Law of the People's Republic of China (for Trial Implementation),
Environmental Protection Law of the People's Republic of China was enacted in 1989, which was the
milestone of China’s environmental protection. In June 1992, United Nations Conference on
Environment and Development stipulated the sustainable development as a common development
strategy in the future. The concept of sustainable development was brought into environmental
protection in China. In the 21st century, the conflict between economic- social development and the
environmental carrying capacity is escalated and the contradiction between human and nature is
growing. In order to solve the conflict between economic development and environment protection and
to prompt the win-win result between economy and environment, the circular economy is taken as the
strategy of achieving sustainable development. Meanwhile a series of laws, regulations and ordinances
have been established to ensure the implementation of the circular economy.
Law of the People's Republic of China on Promotion of Cleaner Production passed on June 29th,
2002 and put into effect on January 1st, 2003 is the fist law in China making an explicit definition about
circular economy. The Article 9 emphasizes that: The local people’s government at or above the county
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level shall formulate plans rationally for regional economic blueprints and readjust industrial structures
to enhance adherence to a recycling economy and promote active enterprise cooperation in the
comprehensive utilization of resources and waste products, thus ensuring high-efficiency utilization and
recycling of resources.” The term of “circular economy” was clearly used here. Under the guidance of
Law of the People's Republic of China on Promotion of Cleaner Production, a series of administrative
laws as well as departmental rules and regulations on production promotion were promulgated, such as
some views on the implementation of the Cleaner Production Promotion Law promulgated by the State
Environmental Protection Administration in 2003. At the same time, relevant departments began to
develop the cleaner production standards, the index system, and the related List. Up to the present ,
China has promulgated cleaner production standards for more than 30 industries such as the oil refining
industry, monosodium glutamate industry. The index system of cleaner production evaluation has been
established for 9 industries including paint manufacturers, ceramic industry sectors. The State Economic
and Trade Commission and the State Environmental Protection Administration have issued <Technical
Guiding Catalog of Cleaner Production of National Key industry> in three batches; the State Economic
and Trade Commission has issued <Eliminate Backward Production Capacity, Technological and
Products Catalogue >(SETC six orders, 16 orders) in three batches. These laws, regulations, ordinance
standards and lists have provided technical support and orientation for enterprises to develop cleaner
production and made directions for smoothly developing circular economy at the enterprise level.
The Law of the People's Republic of China on Appraising Environmental Impacts passed on
October 28, 2002 and promulgated for effect on September 1, 2003 is the most important progress in
our environmental legislation. The law makes great efforts on preventing environmental pollution and
ecological damage from decision-making process. It regulates not only construction projects but also
strategic environmental assessment (SEA). It is a new stage of legislation on environment and
resources for China. The law which is a magnitude strategic measure first attach more importance to
environmental effect from an overall point of view and the initial stage of development, then we draws
up preventing, controlling policies and technical measures. So, there will be little or no chance to cause
troubles for ecological environment. Promulgating the Law is also the promulgation of circular
economic legislation which makes a good beginning of circular economic development.
The law of the People’s Republic of China on prevention and control of environmental pollution by
solid waste was passed on December 29, 2004. Its third item give a clear definition on the principles of
preventing and controlling solid waste: reducing the discharge and danger of solid waste, making good
use of and safely disposing solid waste, preventing and controlling solid waste, promoting the
development of clean production and circular economy, encouraging and supporting the comprehensive
use of resources, full recovery and rational utilization of solid waste, adopting economic, technical
policies and measures that facilitate the comprehensive use of solid waste, encouraging and supporting
solid waste disposal measures which contribute to environmental protection ,in order to make the
industry of prevention and control of environmental pollution by solid develop well. This law laid a
good foundation for the further legislation of circular economy.
The law of the People’s Republic of China on renewable energy passed on February 28, 2005,
carried out on January 1, 2006 marks that our state will develop renewable energy, ensure national
energy security, prevent and control the environmental pollution and ecological damage of using
energy ,accelerate the new energy revolution of the use of renewable energy by air. The law supplies a
positive policy framework for the development and utilization of renewable energy and it also shows
that the state attaches great importance to the development of the renewable energy cause, energy
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security, environmental protection and the full implementation of the sustainable development
strategy. The renewable energy is most important to adjust economic structure especially the energy
structure to reduce the pressure of people, resource and environment brought about by the rapid
economic growth.
Energy Conservation Law of the People's Republic of China revised on October 28, 2007 and put
into effect on January 1, 2008 puts conserving energy into the state laws for the first time, and it will
contribute to energy-efficiency upgrade as well as social and economic concerted development.
Several Opinions of the State Council on Speeding up the Development of Circular Economy was
put into effect by the State Council in 2005. It was regarded as a directed document of developing
circular economy and explicitly raised that in order to realize the strategic objective of building a
well-off society in an all-round way, major efforts should be devoted to develop circular economy in
the light of the principle of “Reduce, Reuse, Recycle” and various efficient measures should be taken to
obtain maximum economic output and minimum waste discharge by minimizing resource
consumption and environment cost, so as to realize the consistency of economy, environment and
social benefit and build a resource saving and environmentally-friendly society.
The state put developing circular economy into the Outline of the 11th Five-Year Plan for National
Economic and Social Development and made it the fundamental principle and important target of
National Economic and Social Development. It also means that circular economy has become the
strategic choice of our national economic and social development. The Circular Economy Promotion
Law was adopted at the 4th session of the Standing Committee of the 11th National People’s Congress
of the People’s Republic of China on August 29, 2008 and will come into force on January 1, 2009. The
law determines the planning rules, the assessment and the examination system of circular economy
with the aim of controlling resources conservation and it also proposes the producer responsibility
extension and management system focusing on enterprises with high energy consumption and high
water consumption, also strengthens the rational incentive mechanism. The Circular Economy
Promotion Law has provided a basis and direction for cycling industry in China, formed a resources
saving and environmental friendly behavior way in the whole society, so it has promoted sustainable
development as a result.
Besides, the state has adjusted resource tax standards of some mineral resources, raised
consumption tax of some products including oil products, large displacement automobiles, wooden
disposable chopsticks and hardwood floors etc. It also has adjusted The List of Comprehensive
Utilization of Resources and put into effect the Administrative Measures for the Determination of
Resources Comprehensive Utilization Encouraged by the State after amendment. At the same time, the
State Council issued notification for establishing the system of government-compulsory purchase on
energy saving products and the department concerned issued the Implementation Opinions of
Government Purchase on Environmental Symbol Product. The constant perfection of relevant policies
promotes the development of circular economy.
1.4.2 The Demonstration Pilot Project
It is a pioneering and comprehensive work to develop circular economy. There are many
demonstration pilot projects of circular economy which provides practical experience for propelling
circular economy into full scale by gradually applying with the direction of typical ones.
The State Environmental Protection Administration has began the pilot operation of constructing
eco-industrial exemplary park since 1999, and formulated four important document. In April, 2007, the
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State Environmental Protection Administration formulated the notice of the constructing on national
eco-industrial exemplary park. The state environmental protection administration, ministry of
commerce and the ministry of science and technology will develop the construction of national
eco-industrial exemplary park in cooperation in the national economic and technological development
zones and Hi-tech zone. The eco-industrial exemplary park construction has been pushed to a new
height through the cooperation of these three ministries, which is tremendously significant to direct our
national development zone on improving the quality of economic growth, taking a new road to
industrialization and achieving sustainable development.
Up to March, 2008, both industrial parks and new-tech industrial zones in Suzhou and the
economic and technological development zones in Tianjin have passed the acceptance check and been
nominated as national eco-industrial exemplary park. There are 27 industrial parks such as Guigang
national eco-industrial (sugar) exemplary park which have been approved to constructing national
eco-industrial exemplary park( See the attached schedule 1).
The pilot program of circular economy has also been started up now. For implementing the
“Several Opinions of the State Council on Speeding up the Development of Circular Economy”,
National Development and Reform Commission together with the State Environmental Protection
Administration, Ministry of Science and Technology, the Ministry of Finance, the Ministry of
Commerce, and the National Bureau of Statistics formulated the notice of organizing the development
of the pilot program of circular economy, which officially launched the work. The fist pilots include 10
provinces and cities, such as Beijing, Shanghai and Liaoning province, etc, and also 13 industrial parks
such as the economic and technological development zones in Tianjin and new-tech industrial zones in
Suzhou etc, the enterprises in the four important filed and 42 enterprises in Zhejiang Province,
Qingdao, and Guiyu county in Guangdong Province and 7 important industries. The second pilot
program was developed in 2007. The second pilots contained 17 provinces or cities including Tianjin
and Shanxi province, 20 industrial parks such as lingang industrial park in Tianjin, 17 enterprises or
bases in four important fileds, and 42 enterprises in 11 important industries. ( See the attached schedule
2 and 3)
2 China's Renewable Resources Industry
2.1 The Status of China's Renewable Resources Industry
2.1.1 The Renewable Resources Industry’s initial shape
As the whole, the socialist market economy system has been improved after the past 30 years of
reform and opening-up, the scale of the renewable resources industry became larger and larger, the
regional terminal market came into being , and the technical level was been raised evidently.
（1）The Recovery System changes obviously and the function is gradually improved
In the early years of New China, two system for recycling waste and used materials were
established: one is at all material (including metal’s recovery) and another is the supply and marketing
cooperative system, which was the world's most well-used material recovery system. After the reform
and opening-up, China's market economic system improving quickly, and the recycling system was
established according to the planned economic system gradually shrunk by use of diversion, retirement
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or changing job of the worker. Specially, after the department of the recycling materials been
withdrawal, the role of a number of local materials and supply-marketing cooperation Recovery is in the
decline. On the other hand, a large number of agricultural labourer from their country began to work for
recycling industry, and the interests-oriented recovery system which regards enterprises or industrial
parks as a leader gradually develop and grow, which is more and more important. It is found that about
500,000 t aluminum, 400,000 t copper, 300,000 t lead were collected by social recycling system every
year. The adjustment and development of waste material recycling system laid the foundation for
renewable resources industrial.
（2）Some regional terminal markets and trade fairs were developed
Since the reform and opening up, the income gap between urban people and rural farmers has
gotten broader and broader. With day-to-day supplies updated in urban being speeded up, a good many
of items washed out, including hand-me-down or even new. Such wasted materials can be continued to
use, which will bring waste from the large cities to the medium cities, and then to second-hand goods in
circulation in the rural areas, It can be tested by the waste recovery, processing, trading market in quite a
number of cities around. With the shortage of domestic resources, the importation of waste became a
new industry in the port of coastal areas. Since the 1990s, importing and breaking waste metal
accelerated the progressive development of the formation of large-scale industries in Guangdong,
Zhejiang, Jiangsu, Shanghai, Tianjin and other coastal areas, the the industry of dismantling and
scraping the imported metal also developing rapidly in Shandong, Hebei Province, and the central
region of Miluo or Wing Hing in Hunan.
(3) technological level of reusing resources has been increased
In spite of a large number of small and medium-sized enterprises (mainly small workshops or
manual) of renewable resources are less skilled, but the larger scale of some enterprises mastered the
higher level of processing technology through importing advanced production line. For the development
of facilities or equipment adapted to the Chinese characteristics of the waste treatment, several
enterprises made an alliance with scientific research institutes at home and abroad and some devices or
equipments have been exported to foreign countries. The advanced equipment and production
equipment was used by some joint-ventured enterprises and foreign-funded enterprises. All of them
effectively promote the regeneration of our renewable resources and improve the level of industrial
technology.
2.1.2 Remarkable economic and social benefit from developing renewable resource
According to the correlative research, renewable resource has been recycled about 400, 000, 000t
in our country during the tenth five-year plan, recycling 80, 000, 000t per year with the growth rate of
more than 12% per year. In 2006, the recycled metal, waster plastic, waster paper and other major
renewable resource was extended to 103, 000, 000t, which worth 2, 421, 000, 000RMB accounting for
1.15% of GDP(2, 094 000, 000, 000, 000RMB) in that year.
(1) Recycling waster material and import made an important complement for resource supply
Although Cu、Fe、Al are non-renewable mineral resources, abandoned steel or Al can be recycled
and reused. Exploitation of these resource can not only increase the resource supply but also decrease
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destroy of the ecosystem and pollutants while exploiting natural resource, with the resource
environmental pressure of economic development easing. Some cities or provinces without original
resource wanted to se up resource production base by recycling wasted material or separating and
processing imported waster material, the illustrious renewable resource processing garden are those in
Taizhou of Zhejiang province, Taicang of Jiangsu province, Qingyuan in Guangdong province, Miluo
and Yongxing in Hunan province, Tianjin and so on.
(2) Decreasing energy consume and waste emission helped to achieve the aim to energy saving,
consumption reduction and emission reduction during the eleventh five-year plan period.
While producing wasted steel, Al and plastic consume energy resources, much energies were
used up. Using them for new products, the energy can be saved, consumption and emission can be
reduced.
As be found from some research, 1t abandoned steel can produce 0.85t new steel, saving 2t iron
ore, 0.4t standard coal, decrease 1.2t slag. 10, 000t waster paper can produce 800t paper pulp, save 30,
000m3 wood, 12 000t standard coal, 1000, 000m3, decrease 900, 000m3 waste water emission, save
electricity 6, 000 000kw.h.
Recycling or reusing of sorts of waste materials in 2006 was equivalent to save 11.5billion ton
standard coal, accounting for 4.6% of the total energy consumption (2, 460 billion t) in one year;
decreasing 23.97million t SO2 emission, accounting for 9.24% of the total SO2 (259.4 million t)
emission; decreasing 12.58million t COD emission, accounting for 8.8% of the total COD (143.1
million t) emission (show in table 1).
Table 1 Quantity of energy saving and emission reductions using renewable resource in 2006
Source: Annual report of the renewable resources industry in 2006
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(3) Providing large quantities of job opportunities and accelerating local economic development
Renewable resources industry is a typical labor intensive industry, a part of work such as
unloading and classifying manufacture are accomplished, which is familiar even in the developed
country. According to some research, there are over 5000 enterprises for renewable resources, 160, 000
recycling websites, over 3000 recycling fabrication plants, over 10, 000, 000 persons working on it. The
recycling and unloading enterprises absorbed numerous workers, promoting the development of local
economic and social stabilization. According to some researches, about 200, 000 persons in Beijing
work on recycling waste materials, with 2000, 000 persons working on processing and reusing waste
materials on the sides of the city in the renewable resource industry, benefiting to the economic
development of adjacent areas.
In conclusion, the development of renewable resource industry can improve the rate of resource
utilization, make energy saving and consumption and emission reduce to a place, lighten restriction of
resource and environmental pollution; also, positive influence is brought out to the employment supply
and benefit the local economic development, advancing in developing resource saving and environment
friendly society.
2.2 The primary problems in renewable resource industry
(1) Lacking of recognition of the importance and urgency for resource comprehensive utilization
In a long time, some companies haven’t recognize the importance of resource comprehensive
utilization. Instead of recognizing it as an important way of source supply, it is only regarded as a way of
handling waste materials. So recognition of the importance and urgency for resource comprehensive
utilization should be urgently improved.
(2) Imperfect legislation and difficultly to carry out from policy
Specific regulations about resource comprehensive utilization are lacked in our country, although
our country have promulgated a series of normative writs to encourage enterprises exploiting resource
synthetically, the continuity and support degree of the policies cann’t be in accordant with the
requirement of the situation development. It is popular that some policies can not be performed in a good
many of areas.
(3) Behindhand technical equipment, weak innovation ability
Some technique and equipments with independent intellectual property rights lacked, the
exploitation of significantly driven effect of commonness and the key technique are inadequate. Many
renewable materials are absent from exploitation and reuse. Some synthetically using products are
lacking of technique, low of appending value, weak of competition.
(4) Weak of basic wage, lag of ability construction
Because of the half-baked statistical data, the not unified method, the shortage of basic data, the
hindered information communication in national economy development statistics system, the statistics
are hard to be considered as the basic data for macro-control.
2.3 Measures to ensure the development of renewable resource industry
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It is important to continue Chinese fundamental strategy to save resources and energies. While
plans about industry development is made, it is necessary to make a good use of the functions of
investment, finance, revenue and price, taking into account of circulate economy.
(1) strengthen the construction of institution and manage legally
Accelerate the legislation process to comprehensively take advantage of resources, gradually
construct the law system, grounded on “Circular Economy Law” and items of comprehensive utilization
of resources while assisted by the exclusive laws of waste reuse; strengthen the monitor of laws
administration. Propel the comprehensive utilization depending on the constraints of laws. Penalize the
enterprise more heavily which doesn’t start making use of resources comprehensively. Build feasible
permission indicators for market and environment to prevent the second pollution. Severe penalty is
necessary for the enterprises causing severe pollution. Meanwhile, perfect the relative multipurpose use
system and strengthen the force to build fundamental standard.
(2) Strengthen the planning and guiding, and build principal projects.
According to the special situation in the certain business and area, the guide and plan should be
administrated. Make the plan of resource comprehensive utilization and then adopt it in the annual plan
of the area. To attain the goals, the plan should be prosecuted seriously. Construct the principal projects
as models to propel the whole projects and then comprehensively utilize resources. The government
should financially support the principal project.
（3）Improve incentive policy and make sure the prosecution
Continually build and perfect the encouragement strategy for comprehensive utilization of resources
in the market. Adjust the strategy when necessary according to the actual situation of resource
utilization. Take advantage of the recognition system for resources’ comprehensive use and make good
use of supporting strategy from the country.
Manage the system of producer’s responsibility. Consider the propulsion system and external cost
from environment of the utilization. Then make repayments for waste recycle, and propel the building of
circulate industry, such as old machines, batteries, and tires.
Each government should actively buy the commodities which use certain percentage of recycling
materials. The Country can encourage consumers to purchase these commodities by different
consumption measures.
（4）Strengthen the technical innovation, propel the technical progress
The comprehensive utilization of resources should be included in the major national scientific and
technological development plans and the relevant organization in technical research should be
organized. Formulate “China's comprehensive utilization of resources and technology policy”. Timely
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release the policy, technology and management information relating to the comprehensive utilization of
resources. Encourage enterprises to enhance innovation capacity. Guide enterprises to focus on the
development and application of advanced technology for comprehensive utilization of resources.
Strengthening international cooperation in the field of resources comprehensive utilization,
drawing on advanced foreign management experiences, introducing into advanced technology of
comprehensive utilization of resources.
(5) Put more efforts in propagandize and education, raise the awareness amongst the general public
Propaganda activities of comprehensive utilization of resources should be extensively, in-depth,
long-lastingly carried out. A national sense of resources, conservation and responsibility needs to be
constantly improved. The comprehensive utilization of resources idea should be included in primary and
secondary education, higher education, vocational education and technical training system. It is
necessary for press and publication, broadcasting, film and television, cultural and social groups to make
the most of what they’ve got to make a good job of propagandizing comprehensive utilization of
resources. Set examples of advanced individuals of comprehensive utilization of resources, serious
exposure to the phenomenon of severe waste of resources and environmental pollution. Guide the whole
society to establish a correct view of the consumer, encourage the use of products using comprehensive
utilization of resources. Disposable products should be decreased the produce and use. Saving resources
and protecting the environment lifestyle and consumption patterns need to be formed.
(6) Strengthen organizational coordination, give impetus to the work steadily
Comprehensive utilization of resource is a system’s project, relating to various fields of national
economic and social development, which need to coordinate the relevant departments to jointly
promote. National Development and Reform Commission will work with the relevant departments to
establish an effective coordination mechanism, strengthen inter-industry coordination and cooperation,
give full play to trade associations and the role of intermediaries, train service system. The concerned
departments of the local people's governments and the concerned enterprises and institutions should
strengthen the leadership of the comprehensive utilization of resources, so that there are layers of
responsibility to implementation of policy and promote down-to-earth work of the comprehensive
utilization of resources.
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