China has made remarkable progress in developing a circular economy, which is evident to all. In 2003, energy consumption per 10,000 yuan of GDP had dropped by 50% compared to 1990. The reuse rate of industrial water increased by approximately 15%, and the comprehensive utilization rate of industrial solid waste reached 55.8%. Specifically, the utilization rate of fly ash rose from 38% in 1990 to 56% in 2003. Over 60 million tons of waste materials, including chemical and paper products, were recovered during that period. Additionally, pilot projects in Liaoning and Guiyang have shown steady progress.
However, at the recent China Circular Economy Development Forum held at the 9th Beijing Science Fair, numerous domestic and international experts highlighted some challenges in China's circular economy development. Experts such as Qian Yi, deputy director of the National People’s Congress Environment and Resources Commission, and Shao Xuemin, representative of the United Nations Environmental Programme in China, emphasized that these issues are hindering the full potential of China's circular economy.
Following an analysis by experts from the National Development and Reform Commission's Macroeconomic Research Institute, five key problems were identified:
First, there is a lack of public understanding of the circular economy. Under the influence of a one-sided focus on GDP growth, some local officials and departments fail to recognize the growing tension between economic development and resource and environmental constraints. Many still believe that maintaining a 9% annual growth rate is more important than addressing sustainability. Some people only see recycling at the enterprise level, ignoring the multi-level nature of a circular economy. Local governments often prioritize GDP-driven performance metrics or are influenced by employment and social stability pressures, leading to continued emphasis on traditional growth models despite national commitments to sustainable development.
Second, the legal and regulatory framework for promoting a circular economy is still underdeveloped. Although laws like the "Cleaner Production Promotion Law" and "Environmental Impact Assessment Law" exist, they fall short of the comprehensive system needed for a circular economy. Existing regulations often lack clear guidance on circular principles and need revision. While some laws set general goals, they lack specific, enforceable provisions, leaving room for non-compliance without consequences.
Third, technological development and application in the circular economy remain insufficient. China lacks a robust system of technologies tailored to its conditions. Key areas such as energy efficiency, clean production, eco-industrial networks, remanufacturing, and pollution control require advanced solutions. However, China's overall technology level lags behind developed countries by 15–20 years, with only 15% of key equipment reaching international standards, while two-thirds are considered outdated or low-grade.
Fourth, there is no unified national strategy or implementation plan to guide the circular economy. As a strategic choice for achieving a well-off society, the development of a circular economy requires coordinated efforts across all levels of government. Clear roles and responsibilities must be defined to ensure effective implementation and avoid confusion or overlap.
Fifth, there is a lack of a suitable indicator and evaluation system for China's unique context. The theoretical foundation for a circular economy remains underdeveloped, and there is no established system for measuring progress or guiding policy. While many provinces and cities are working on circular economy plans, their index systems are still in the experimental phase.
Overall, while China has made significant strides, addressing these challenges will be crucial for the long-term success of its circular economy initiatives.
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