PRC Law on the Promotion of the Circular Economy

Promulgated: August 29 2008
Effective: January 1 2009

Applicability: The term “circular economy” is a generic term for the reduction, reuse and recycling activities in the course of production, circulation and consumption (Article 2).

Main Contents: Enterprises that produce products or packages that are listed on the catalogue of mandatory recycling must be responsible for recycling the discarded products or packages. Where the materials may be reused, the production enterprise shall be responsible for reusing them. Where the materials are not suitable for reuse due to a lack of technological or economic resources, the production enterprise shall be responsible for non-harmful disposal (Article 15). The state shall place emphasis on regulation of energy and water consumption on key enterprises in the steel, non-ferrous metal, coal, electric power, petroleum processing, chemical, building materials, construction, paper-making, and printing and dye industries with an aggregate annual amount of energy and water consumption exceeding the total amount stipulated by the state (Article 16). Enterprises in the electric power, petroleum processing, chemical, steel, non-ferrous metal and building materials industries must, within the scope and time limit stipulated by the state, use clean energy such as clean coal, petroleum coke and natural gas to replace fuel oil, and cease to use fuel generator sets and oil boilers that fail to comply with state provisions. Enterprises that manufacture combustion engines and motor vehicles shall, in accordance with the fuel economic standards for combustion engines and motor vehicles stipulated by the state, use oil conservation technology to reduce the amount of consumption of petroleum products (Article 21).