2.3 Circular Economy 31
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China’s commitment to developing the circular economy. For China, the circular
economy was not only an environmental strategy but a comprehensive state policy
and plays an essential role in China’s economic development.
The state included the circular economy in its 11th Five Year Plan (2006-2010)as a strategic policy element. The 12th Five Year Plan (2011-2015) concentrates on
the continuous implementation and development of the circular economy (Su et
al. 2013). The circular economy has gained popularity in China not only at various
governmental levels but also with scholars from different fields of research such as
economics, management, law and society. They have started to further examine
the concept so that they can develop their understanding of it. In 2008, the first
worldwide Circular Economy Promotion Law was adopted by China and became
effective the following year (Geng et al. 2012). It defines the circular economy as
follows: “The term ‘circular economy’ as mentioned in these measures is a generic
term for the reducing, reusing and recycling activities conducted in the process of
production, circulation and consumption” (Standing Committee of the National
People’s Congress 2009, p. 1).
• Daijan Zhu (2008), a professor at the Tonji University in Shanghai, in his article
“Background, Pattern and Policy of China for Developing Circular Economy”
describes the circular economy in China in four points:• The responsibility for promoting the circular economy lies with the State Devel-
opment and Reform Commission whose functions include, but are not limited to
environmental management. The State Development and Reform Commission
is also responsible for guiding the restructuring of the Chinese economy.• The circular economy not only reduces waste but optimizes the relationship
between resource depletion and economic growth and reduces the reliance on
scarce resources such as water and land.• The system approach is one that is important for China. The Chinese govern-
ment strives for a comprehensive approach which includes the implementation
of the circular economy on three levels: individual organizations, industrial
parks and regional.The implementation is forced gradually from low-level recycling practices to reduce
consumption of resources and pollution to high level recycling practices for products
and services to prevent consumption and pollution (Zhu 2008).
• Especially the first and third point distinguishes how the circular economy
has been implemented in China compared to in other countries. In China the
implementation of circular economy is mainly driven by the government and