Circular Economy Promotion Law of the People's Republic of China (Chinese and English Text)

The following translation was retrieved from the Beijing Review Web site on February 14, 2013. The Chinese text was retrieved from the Central People's Government Web site on August 29, 2009.

Circular Economy Promotion Law of the People's Republic of China

Adopted at the fourth session of the Standing Committee of the 11th National People's Congress on August 29, 2008

Chapter I General Provisions

Article 1 The Law is formulated for the purpose of facilitating circular economy, raising resources utilization efficiency, protecting and improving the environment and realizing sustainable development.

Article 2 The term "circular economy" herein is a general term for the activities of reducing, reusing and recycling in production, circulation and consumption.

Reducing herein means the reduction of the resource consumption and waste generation in production, circulation and consumption.

Reusing herein means the direct use of wastes as products, or the use of wastes as products after repair, renovation or reproduction, or the use of wastes, wholly or partly, as parts of other products.

Recycling herein means the direct use of wastes as raw materials, or after regeneration.

Article 3 Developing circular economy is an important strategy for the national economic and social development, thus, the following guidelines shall be adhered to: comprehensive planning, reasonable layout, taking measures according to local conditions, emphasis on actual effects, government promotion, market orientation, enterprise implementation and public participation.

Article 4 Development of circular economy shall be implemented on the basis of being feasible in technology, reasonable in economy and conductive to saving resources and protecting the environment in accordance with the priority of reduction.

In the process of waste reusing and recycling, efforts shall be made to guarantee production safety, ensure that the quality of products meets standards provided by the state, and avoid re-pollution.

Article 5 The general administration for promoting circular economy under the State Council shall be responsible for organizing, coordinating and regulating national circular economy development works; the environmental protection department and other competent departments under the State Council shall be responsible for regulation works concerning circular economy according to their functions respectively.

General administrations for developing circular economy under local people's governments above county level shall be responsible for organizing, coordinating and regulating works concerning circular economy development within their administrative jurisdictions; relevant departments for environmental protection under local people's governments above county level shall be responsible for regulation works concerning circular economy according to their functions respectively.

Article 6 Industrial policies formulated by the state shall meet the requirements for developing circular economy.

Contents about development of circular economy shall be included in any national economic and social development plans and any annual planning formulated by any people's government above county level, and any planning regarding environmental protection and science and technology development, etc. formulated by any relevant department under the people's governments above county level.

Article 7 The state encourages and supports research, development and promotion of science and technology regarding circular economy, as well as the publicity, education, popularization of scientific knowledge and international cooperation on circular economy.

Article 8 People's governments above county level shall establish a goal-responsibility system for circular economy development and take measures with respect to planning, finance, investment and government procurement, etc. to promote circular economy.

Article 9 Enterprises and public institutions shall establish a sound management system and take measures to reduce resource consumption as well as generation and discharge of wastes, and improve their reusing and recycling level of wastes.

Article 10 Citizens shall have a better sense of resource conservation and environmental protection, consume reasonably and save resources.

The state encourages and guides citizens to use products and recycle products featured by energy saving, water saving, material saving and environmental protection, and reduce the generation and discharge of wastes.

Citizens are entitled to reporting activities of wasting resources and destroying environment, to accessing official information on circular economy promotion, and to giving opinions and suggestions.

Article 11 The state encourages and supports trade associations to exert functions of technical guidance and services in developing circular economy. The people's government above county level may consign qualified trade associations or other social organizations to provide public services on the promotion of circular economy.

The state encourages and supports intermediary institutions, academies and other social organizations to conduct the publicity, technical promotion and consulting services concerning circular economy, so as to facilitate development of circular economy.

Chapter II Basic Administrative System

Article 12 The general administration for developing circular economy under the State Council shall formulate the national circular economy development plan with relevant departments for environmental protection under the State Council and promulgate and implement the plan upon approval of the State Council. The administrative departments of circular economy development under the people's governments at or above the level of districted city shall formulate the circular economy development plans of their administrative jurisdictions with relevant departments of environmental protection under the people's governments at the same level, and promulgate and implement the plan upon approval of the people's governments at the same level.

The circular economy development plan shall include objectives, applicable scopes, main contents, major tasks and safeguard measures, as well as indicators for resource output rates, waste reuse and recycling, etc.

Article 13 The people's governments at or above county level shall regulate and adjust the industrial structure in their administrative jurisdictions in accordance with control indicators of the discharge of main pollutants, construction land and total water supply volume for their administrative jurisdictions by the people's government at a higher level to facilitate development of circular economy.

New, reconstruction or expansion projects shall meet the requirements of the control indicators of discharge of main pollutants, construction land and total water supply volume for the administrative jurisdiction where they are located.

Article 14 The general administration for developing circular economy under the State Council shall establish and improve the assessment indicator system for circular economy with other relevant departments for statistics and environmental protection under the State Council.

The people's governments at a higher level shall regularly assess the work of the people's government at a lower level on developing circular economy in accordance with major assessment indicators provided in the preceding paragraph and take the said assessment results into consideration on the evaluation of the people's government assessed as well as its persons-in-charge.

Article 15 An enterprise which produces products or packing materials in the catalogue of mandatory recycle shall recycle its waste products or packing materials, use those waste articles that are usable, or make bio-safety disposals if those waste articles cannot be reused due to economic or technical restrictions.

Where any producer consigns any seller or other organ to recycle the waste products or packing materials provided in the preceding paragraph, or consigns any waste recycling or disposal enterprise to reuse or dispose the said waste articles, the consignee shall be responsible for the recycle, reuse or disposal in accordance with relevant laws, regulations and agreements.

With respect to the products and packing materials in the catalogue of mandatory recycle, a consumer shall deliver the waste products or packing materials to the producer or seller or other organs consigned by the producer.

The catalogue and administrative measures for products and packing materials subject to mandatory recycle shall be formulated by the general administration for developing circular economy under the State Council.

Article 16 The state shall implement a key supervision and administration system regarding energy and water consumptions concentrating on enterprises in industries including steel, nonferrous metals, coal, power, oil processing, chemical, building materials, construction, paper-making, printing and dyeing, etc., whose general energy and water consumption volumes exceed the total volumes provided by the state per year.

The key supervision and administration regarding energy-saving over major energy-consumption entities shall comply with provisions of the Energy Conservation Law of the People's Republic of China.

The measures for supervision and administration over major water-consumption entities shall be formulated by the general administration for developing circular economy under the State Council and other relevant departments under the State Council.

Article 17 The state shall establish a sound circular economy statistics system, strengthen statistical administration of resource consumption, comprehensive utilization and waste generation, and publicize major statistical indicators on a regular basis.

The standardization department under the State Council shall establish a sound circular economy standard system together with the general administration for developing circular economy and relevant departments for environmental protection under the State Council, and formulate and improve standards on energy-saving, water-saving, material-saving, wastes reusing and recycling.

The state shall establish and improve a labeling system on resource consumption level such as energy efficiency of products.

Chapter III Reduction

Article 18 The general administration for developing circular economy under the State Council shall promulgate, together with the competent departments of environmental protection, etc., the catalogue of technologies, processes, equipment, materials and products that are encouraged or restricted or eliminated by the government.

Production, import and sale of equipment, materials and products under the catalogue of elimination shall be prohibited; and the use of technologies, processes, equipment and materials under the catalogue of elimination shall be prohibited.

Article 19 Any entity or individual engaging in the design of process, equipment, product and packing material shall, in accordance with the requirements for reducing resource consumption and waste generation, make a prior choose of materials and designing schemes that are easy to recycle, dismount and degrade and are innocuous and harmless or with low toxic or harm, and shall comply with the mandatory requirements of relevant national standards.

With respect to electric and electronic products that may pollute the environment in dismounting and disposal, toxic and harmful substances prohibited by the state shall not be used in design. The catalogue of toxic and harmful substances that are prohibited to use in electric and electronic products, etc. shall be formulated by the general administration for developing circular economy under the State Council with the competent department of environmental protection under the State Council.

The design of product packing shall be subject to the product packing standard to avoid wasting resources and polluting the environment due to over-packing.

Article 20 Industrial enterprises shall adopt advanced or proper water-saving technologies, processes and equipment, set forth and implement water-saving plan, enhance water-saving management and make complete control of water consumption in production.

Industrial enterprises shall enhance their quantitative management of water consumption, equip with and use acceptable water volume measuring devices and establish a water consumption statistics system and a water use analysis system.

A new, reconstruction or expansion project shall have water-saving facilities. Such water-saving facilities shall be designed, built and used at the same time with the principal part of the project.

The state encourages and supports coastal areas to conduct seawater desalination and direct use of seawater to save fresh water.

Article 21 The state encourages and supports enterprises to use high-efficient oil-saving products.

Enterprises engaging in power, oil processing, chemical, steel, nonferrous metals and building materials, etc. shall, within the scope and time limit provided by the state, replace fuel oil by clean energies including clean coal, petroleum coke and natural gas, and stop using oil generating sets and oil-fired boilers which do not comply with provisions of the state.

Combustion engine and motor vehicle producers shall adopt oil-saving technologies in accordance with the economic standard for combustion engine and motor vehicle to reduce the consumption of oil products.

Article 22 Any entity exploiting mineral resources shall make a comprehensive plan, set forth a reasonable development and use scheme, and take proper exploiting sequence, methods and ore dressing processes. Exploitation license issuing agencies shall verify indicators concerning mining recovery rate, dilution rate, recovery of ore dressing, water cycle utilization rate of the mine, land reclamation rate, etc. in the development and use plan submitted by the applicant. For those which are unqualified, the agency shall not issue the exploitation license. The exploitation license issuing agencies shall strengthen administration and supervision over the exploitation of mineral resources according to law.

Mining enterprises shall, while exploiting main mineral species, conduct a comprehensive exploitation and a proper use of commercially valuable intergrown and associated minerals; with respect to minerals that have to be exploited at the same time while cannot be used currently and tailings containing useful components, they shall take protection measures to avoid resource waste and ecological destruction.

Article 23 Entities engaging in architecture design, building and construction shall adopt technologies and processes that save energy, water, land and materials, and use small, light and recycle products for the buildings and structures designed, built or constructed by them in accordance with relevant national provisions and standards. Areas shall, if possible, fully take advantage of renewable resources such as solar energy, geothermal energy and wind energy.

The state encourages production of building materials by use of nontoxic and harmless solid waste, encourages the use of bulk cements, and promotes the use of ready-mixed concrete and mortar.

The act of destroying cultivated land to make bricks is prohibited. The production, sale and use of clay bricks are prohibited within the time limit and areas provided by the State Council or the governments of provinces, autonomous regions and municipalities directly under the Central Government.

Article 24 The people's governments at or above county level as well as their agricultural departments shall promote the intensive use of land, encourage and support agricultural producers to adopt advanced planting, breeding and irrigating technologies that reduce the use of water, fertilizer and pesticide, promote the energy saving of agricultural machinery, and give priority to develop ecological agriculture.

In areas short of water, efforts shall be made to adjust planting structure, give priority to develop water-saving agriculture, promote the collection and utilization of rain water and build and maintain water-efficient irritating facilities to raise water use efficiency and reduce the vaporization and loss of water.

Article 25 Government agencies and other organizations using fiscal capital shall practice strict economy, stop wasting, use products, devices and facilities that save energy, water, land and material and be conductive to protecting the environment, and save official supplies. Departments responsible for government administrative affairs under the State Council and the people's governments at or above county level shall formulate energy and water quota for government agencies at the same level; financial departments shall make expenditure standard according to the quota.

The people's governments in urban areas as well as owners or users of buildings shall take measures to enhance the maintenance and management of the buildings to extend their service lives. The people's governments in urban areas shall not demolish any building which meets the city planning and construction standards and is within its reasonable service life, unless for public interests.

Article 26 Service enterprises engaging in restaurant, entertainment and hotel shall use products that save energy, water and material and are conductive to protecting the environment, and reduce the use of or not use products that waste resources and pollute the environment.

Newly-built service enterprises engaging in restaurant, entertainment and hotel after the implementation of the Law shall adopt technologies, devices and facilities that save energy, water and materials and are conductive to protecting the environment.

Article 27 The state encourages and supports the use of reclaimed water. In areas where the use of reclaimed water is possible, the use of tap water for urban road cleaning, greening and landscaping is restricted or prohibited.

Article 28 The state shall restrict the production and sale of disposable consumption products with the prerequisite of safeguarding product safety and sanitation. The catalogue of the said products shall be formulated by the general administration for developing circular economy under the State Council with other competent departments of finance and environmental protection under the State Council.

With respect to the production and sale of disposable consumption products included in the catalogue provided in the preceding Paragraph, competent departments of finance, taxation and foreign trade under the State Council shall formulate restrictive tax and export measures.

Chapter IV Reusing and Recycling

Article 29 The people's governments at or above the county level shall make a comprehensive plan of the regional economic layout, reasonably regulate the industrial structure, promote the cooperation among enterprises on the comprehensive use of resources, and realize the high efficient use and cycling use of resources.

Industrial parks of various types shall organize the enterprises inside to carry out comprehensive use of resources and promote development of circular economy.

The state encourages enterprises in various types of industrial parks to exchange wastes for use, adopt cascade utilization of energy, intensive use of land and classified and recycling use of water, and share infrastructure and other related facilities.

Newly-built and reconstructed industrial parks of various types shall make an environmental influence assessment in accordance with law and take ecological-protection and pollution-control measures to ensure that environment quality in the parks meets provided standards.

Article 30 Enterprises shall make a comprehensive utilization of fly ash, gangue, tailing, lean material, scrap material, exhaust gas and other industrial wastes generated in production.

Article 31 Enterprises shall develop a series water system and cycling water system to improve the water reuse rate.

Enterprises shall adopt advanced technologies, processes and equipment to recycle waste water generated in production.

Article 32 Enterprises shall use advanced or proper reclaiming technologies, processes and equipment to make a comprehensive utilization of remaining heat, pressure, etc. generated in production.

Where any enterprise builds a grid-connected power generation project utilizing remaining heat and pressure, coalbed gas and low-calorie fuels including gangue, slime, garbage, etc., it shall obtain an administrative license or report for filing in accordance with laws and provisions of the State Council. Power grid enterprises shall, in accordance with provisions of the state, conclude grid connection agreements with enterprises engaging in generating power by using resources comprehensively, provide grid connection services, and purchase the on-grid electricity of the grid-connected power generation project at a full amount.

Article 33 Construction enterprises shall make a comprehensive utilization of construction wastes generated in construction. If they are unable to do so, they shall consign qualified producers and operators to make a comprehensive utilization or bio-safety disposal of such wastes.

Article 34 The state encourages and supports agricultural producers and relevant enterprises to employ advanced or applicable technologies to make a comprehensive utilization of straws of crops, excrements of poultry and livestock, by-products from the processing of agricultural products and waste agricultural films, and develop and use marsh gas and other biomass energies.

Article 35 The people's governments at or above county level and their departments of forestry shall develop ecological forestry actively, and encourage and support forestry producers and relevant enterprises to employ timber-saving and alternative technologies to make a comprehensive utilization of forestry wastes, inferior woods, short ends, fuel woods, sand shrubbery, etc. and improve the comprehensive utilization rate of timbers.

Article 36 The state supports producers and operators to establish an industrial wastes exchange information system to promote enterprises to exchange information on industrial wastes.

Where any enterprise is unable to make a comprehensive use of wastes generated in production, it shall provide such wastes to qualified producers or operators for comprehensive utilization.

Article 37 The state encourages and promotes the establishment of waste recycling system.

Local people's governments shall make a reasonable layout of waste recycling stands and trading markets according to their urban-rural planning, and support waste recycling enterprises and other organizations to conduct waste collection, warehousing, transport and information exchange.

Waste recycling and trading markets shall comply with the provisions of the state on environmental protection, safety, fire-fighting, etc.

Article 38 The dismantlement and reusing of special products, such as used electric and electronic products, discarded motor vehicles and ships, waste tires and waste lead-acid batteries, shall comply with the provisions of relevant laws and regulations.

Article 39 Recycled electric and electronic products that are used for sale after repair shall meet the recycled products standard and be labeled "recycled product" at a marked place.

Recycled electric and electronic products that need to be dismantled and reused shall be sold to qualified dismantling enterprises.

Article 40 The state supports enterprises to reproduce components and parts of motor vehicles, mechanical products and machine tools and renovate tires.

The quality of the reproduced and renovated products for sale shall meet standards provided by the state and be labeled "reproduced product" or "renovated product" at a marked place.

Article 41 The people's governments at or above county level shall make a comprehensive plan on building facilities for the classified collection and recycling use of urban and rural household garbage, establish and improve the system for classified collection and recycling use, and raise the recycling rate of household garbage.

The people's governments at or above county level shall support enterprises to build facilities for sludge resource recycling and disposal, improve the comprehensive utilization level of sludge and avoid re-pollution.

Chapter V Incentive Measures

Article 42 The State Council and the people's governments of provinces, autonomous regions and municipalities directly under the Central Government shall set up relevant special funds for developing circular economy to support scientific and technological research and development regarding circular economy, demonstration and promotion of technologies and products regarding circular economy, implementation of major circular economic projects and information services for developing circular economy. Specific measures shall be formulated by the administration of finance under the State Council with the general administration for developing circular economy under the State Council and other relevant departments.

Article 43 The State Council and the people's governments of provinces, autonomous regions and municipalities directly under the Central Government as well as their relevant departments shall incorporate the independent innovation research, application demonstration and industrialization of key science and technology projects on circular economy in national or provincial science and technology development plans and hi-tech industrial development plans, and appropriate certain fiscal capital for support.

Any entity that uses fiscal capital to introduce main technologies and equipment relevant to circular economy shall make a plan for digestion, absorption and innovation, submit the plan to competent departments for approval and implement it under the supervision of such departments. Competent departments shall establish a coordination system according to actual needs to make a comprehensive coordination of the introduction, digestion, absorption and innovation of such main technologies and equipment and give a financial support.

Article 44 The state shall give tax preferences for industrial activities conductive to promoting circular economy, and encourage the import of technologies, equipment and products that may save energy, water and materials through measures including taxation, and restrict export of products with high energy-consumption and heavy pollution during production. Specific measures shall be formulated by the administrations of finance and taxation under the State Council.

Where any enterprise uses or produces any technology, process, equipment or product listed in the catalogue of encouraged clean production and resource comprehensive utilization by the state, it may enjoy tax preferences in accordance with relevant provisions of the state.

Article 45 When formulating and implementing investment plans, general administrations for developing circular economy under the people's governments at or above county level shall incorporate the projects that may save energy, water, land and materials and use resources comprehensively into the major investment area.

Where any project meets national industrial policies that may save energy, water, land and materials and use resources comprehensively, financial institutions shall give them credit support such as preferential loans and provide relevant financial services actively.

Where any enterprise produces, imports, sells or uses any technology, process, equipment, material or product listed in the catalogue of elimination, financial institutions shall not grant any credit support in any form.

Article 46 The state shall implement a price policy conductive to resource conservation and reasonable utilization and guide entities and individuals to save and reasonably use water, power, gas and other resource products.

Administrations of pricing under the State Council and the people's governments of provinces, autonomous regions and municipalities directly under the Central Government shall carry out restrictive price policies to restrictive projects in high resource-consumption industries in accordance with national industrial policies.

Where any grid-connected power generation project uses remaining heat and pressure, coalbed gas and low-calorie fuels including gangue, slime, garbage, etc., pricing departments shall fix the on-grid electricity price for it in accordance with principles conductive to resource comprehensive utilization.

The people's governments of provinces, autonomous regions and municipalities directly under the Central Government may establish a waste discharge charging system according to local economic and social development situation. The charges collected shall not be used for any purposes other than garbage classification, collection, transport, warehouse, utilization and disposal.

The state encourages reclaiming wastes by way of trade-in, deposit, etc.

Article 47 The state shall implement a government procurement policy conductive to developing circular economy. Where any procurement uses fiscal capital, products and reproduced products that may save energy, water and materials and be conductive to environment protection shall be purchased preferentially.

Article 48 The people's governments at or above county level and their relevant departments shall commend and reward entities and individuals that make outstanding contributions to circular economic management, scientific and technological research as well as product development, demonstration and promotion.

Enterprises and public institutions shall commend and reward teams and individuals that make outstanding contributions to circular economy development.

Chapter VI Legal Responsibilities

Article 49 Where any general administration for developing circular economy or other competent department under the people's government at or above county level does not investigate and punish acts in violation of the Law after it finds or is reported such acts, or it does not perform its responsibilities of administration and supervision according to law, the people's government at the same level or the competent department of the people's government at a higher level shall order it to make corrections and punish the person-in-charge and other directly responsible persons.

Article 50 Where any entity or individual produces or sells any product or equipment listed in the catalogue of elimination, it/he shall be punished according to the provisions of the Product Quality Law of the People's Republic of China.

Where any entity or individual uses any technology, process, equipment or material listed in the catalogue of elimination, the general administration for developing circular economy under the people's government at or above county level shall order it/him to stop using, confiscate the illegally-used equipment and material and impose a fine of 50, 000 yuan up to 200, 000 yuan; under any serious circumstance, the general administration for developing circular economy under the people's government at or above county level shall submit a suggestion to the people's government at the same level to order the entity or individual to stop or close its/his business in accordance with the authority provided by the State Council.

Where any entity or individual violates the provisions herein to import any equipment, material or product listed in the catalogue of elimination, the customs shall order it/him to return such articles and impose a fine of 100, 000 yuan up to 1 million yuan. If the importer is unknown, the carrier shall bear the responsibility of returning or relevant disposal expenses.

Article 51 Where any entity or individual violates the provisions herein to use any toxic and harmful substance listed in the catalogue of prohibited use by the state in their electric and electronic products which may pollute environment in their dismantlement or disposal, the product quality supervision department under the people's government at or above county level shall order it/him to make correction within a time limit; if it/he does not make any correction within the time limit, a fine of 20, 000 yuan up to 200, 000 yuan shall be imposed; under any serious circumstance, the product quality supervision department under the people's government at or above county level shall report the situation to the administration for industry and commence at the same level and the latter shall revoke its/his business license.

Article 52 Where any enterprise engaging in power, oil processing, chemical, steel, non-ferrous metals, building materials, etc. violates provisions herein by failing to stop using any oil generating set or oil-fired boiler which does not comply with provisions of the state within the scope and time limit, the general administration for developing circular economy under the people's government at or above county level shall order it/him to make correction; if it/he does not make any correction within the time limit, the said administration shall order it to dismantle the oil generating set or oil-fired boiler and impose a fine of 50, 000 yuan up to 500, 000 yuan.

Article 53 Where any mining enterprise violates the provisions herein by failing to meet the indicators concerning mining recovery rate, dilution rate, recovery of ore dressing, water cycle utilization rate of the mine and land reclamation rate, department of geology and mineral resources under the people's government at or above county level shall order it/him to make correction within a time limit and impose a fine of 50,000 yuan up to 500,000 yuan; if it/he does not make any correction within the time limit, the exploitation license issuing agency shall revoke its/his exploitation license according to law.

Article 54 Where any entity or individual violates the provisions herein to produce, sell or use clay bricks within the time limit or place when or where the production, sale and use of clay brick are prohibited by the State Council or people's governments of provinces, autonomous regions and municipalities directly under the Central Government, the department designated by the people's government at or above county level shall order it/him to make correction and confiscate its/his illegal proceedings if any. If it/he continues to produce or sell clay bricks beyond the time limit, the administration for industry and commerce under the local government shall revoke it/his business license according to law.

Article 55 Where any power grid enterprise violates provisions herein by refusing to purchase the electricity generated by any enterprise by utilizing remaining heat and pressure, coalbed gas and low-calorie fuels including gangue, slime and garbage, the national power regulatory organ shall order it to make correction within a time limit; if there is any loss to the latter enterprise, the power grid enterprise shall bear compensation liabilities according to law.

Article 56 Where any entity or individual has any of the following acts, the administrations for industry and commerce under the people's governments at or above county level shall order it/him to make correction within a time limit and may impose a fine of 5,000 yuan up to 50,000 yuan; if it/he does not make any correction within the time limit, the said administrations shall revoke its/his business license by law; if there is any loss due to such acts, it/he shall bear compensation liabilities:

(1) Selling recycled electric and electronic products without label of "recycled product;" and

(2) Selling reproduced or renovated products without label of "reproduced or renovated product."

Article 57 Where any entity or individual violates provisions herein and constitutes any crime, criminal responsibilities shall be ascertained according to law.

Chapter VII Supplementary Provisions

Article 58 The Law shall enter into force as of January 1, 2009.