China's move to a Circular Economy as a development strategy

Asian Business & Management volume 10, pages463–484(2011)Cite this article

Abstract

While China's rapid growth rates have been widely admired, they have been accompanied by extensive pollution and waste. It is therefore unsurprising that China has adopted as its development model the Circular Economy (CE), encompassing notions of industrial ecology and resource reduction, reuse and recycling. This article analyses and appraises China's capacity to implement such a strategy. The article engages in a discussion of what China means by a CE and whether the policies of eco-industrial development being pursued actually fit with this general goal. We also offer our own econometric update on China's progress towards a CE. The article tests the conjecture that China is able to link its ‘compressed development’ strategy with industrial ecology ideas – seeing the CE as not only a source of competitive advantage, but also pointing towards a solution to global resource depletion and waste accumulation and devastation. While it must be understood that China faces enormous obstacles in implementing the CE idea, and starts from a very low base in doing so, nevertheless it has certain latecomer and administrative advantages in putting its economy on a new, closed-loop footing, as compared with more advanced countries with established industrial systems.

This is a preview of subscription content, log in to check access.

Access options

Buy single article

Instant access to the full article PDF.

US$ 39.95

Tax calculation will be finalised during checkout.

Figure 1
Figure 2
Figure 3
Figure 4

Notes

  1. 1.

    Available at http://www.gov.cn/flfg/2008-08/29/content_1084355.htm (Chinese); http://www.fdi.gov.cn/pub/FDI_EN/Laws/GeneralLawsandRegulations/BasicLaws/P020080919377641716849.pdf (English).

  2. 2.

    See the Country Analysis Brief (China) at http://www.eia.doe.gov/emeu/cabs/China/Full.html for some statistics.

  3. 3.

    Differences between the quantities of input and output items are common in MFA and normally can be eliminated by introducing a memorandum item, as Eurostat (2001) recommends.

  4. 4.

    Admittedly, the figure reflects the industrial recycling only and excludes recycling of domestic wastes, which hypothetically only constitute a small proportion of overall recycling.

References

  1. Ayres, R.U. (2004) On the life cycle metaphor: Where ecology and economies diverge. Ecological Economics 48: 425–438.

    Article  Google Scholar 

  2. Boulding, K.E. (1966) The economics of the coming Spaceship Earth. Environmental Quality in a Growing Economy, Resources for the Future, Inc., http://dieoff.org/page160.htm, accessed 4 October 2009.

  3. CCICED. (2003) Strategy and mechanism study for promotion of circular economy and cleaner production in China. China Council for International Cooperation on Environment and Development, Task Force on Circular Economy and Cleaner Production, www.cciced.org/2008-02/03/content_9646082.htm, accessed 21 September 2008.

  4. Chertow, M. and Ehrenfeld, J. (2001) Industrial symbiosis: The legacy of Kalundborg. In: R. Ayres and L. Ayres (eds.) Handbook of Industrial Ecology. Cheltenham, UK: Edward Elgar, pp. 334–350.

    Google Scholar 

  5. Chertow, M.R. (2007) ‘Uncovering’ industrial symbiosis. Journal of Industrial Ecology 11 (1): 11–30.

    Article  Google Scholar 

  6. Chiu, A.S.F. and Yong, G. (2004) On the industrial ecology potential in Asian developing countries. Journal of Cleaner Production 12: 1037–1045.

    Article  Google Scholar 

  7. Chun, L. (2000) Uneven and compressed development: A note on China. In: A. Clesse (ed.) The World and the New Century. Luxembourg: Luxembourg Institute for European and International Studies.

    Google Scholar 

  8. Cohen-Rosenthal, E. (2004) Making sense out of industrial ecology: A framework for analysis and action. Journal of Cleaner Production 12: 1111–1123.

    Article  Google Scholar 

  9. CSIRO. (2008) Australia and China partner for a low-emission energy future. Reference 07/174, www.csiro.au/news/PCCPartnershipsigned.html, accessed 23 July 2008.

  10. Daly, H.E. (ed.) (1980) The steady-state economy: Toward a political economy of biophysical equilibrium and moral growth. Economics, Ecology, Ethics: Essays Toward a Steady-state Economy. San Francisco, CA: W.H. Freeman.

    Google Scholar 

  11. Daniels, P. and Moore, S. (2001) Approaches for quantifying the metabolism of physical economies: Pt. 1 methodological overview. Journal of Industrial Ecology 5 (4): 69–93.

    Article  Google Scholar 

  12. Ehrenfeld, J. (2007) Would industrial ecology exist without sustainability in the background? Journal of Industrial Ecology 11 (1): 73–84.

    Article  Google Scholar 

  13. Erkman, S. (1997) Industrial ecology: An historical view. Journal of Cleaner Production 5 (1/2): 1–10.

    Article  Google Scholar 

  14. Eurostat. (2001) Economy-wide Material Flow Accounts and Derived Indicators: A Methodological Guild. Luxembourg: Statistical Office of the European Union.

  15. Fang, Y., Cote, R.P. and Qin, R. (2007) Industrial sustainability in China: Practice and prospects for eco-industrial development. Journal of Environmental Management 83: 315–328.

    Article  Google Scholar 

  16. Feng, Z. and Yan, N. (2007) Putting a circular economy into practice in China. Sustainability Science 2: 95–101.

    Article  Google Scholar 

  17. Frosch, R.A. (1997) Industrial ecology: Closing the loop on waste materials. In: D.J. Richards (ed.) The Industrial Green Game: Implications for Environmental Design and Management. Washington DC: National Academy of Engineering.

    Google Scholar 

  18. Frosch, R.A. and Gallopoulos, N.E. (1989) Strategies for manufacturing. Scientific American 261 (3): 144–152.

    Article  Google Scholar 

  19. Geng, Y. and Doberstein, B. (2008) Developing the circular economy in China: Challenges and opportunities for achieving ‘leapfrog development’. International Journal of Sustainable Development and World Economy 15 (3): 231–239.

    Article  Google Scholar 

  20. Geng, Y., Zhu, Q. and Haight, M. (2007) Planning for integrated solid waste management at the industrial park level: A case of Tianjin, China. Waste Management 27: 141–150.

    Article  Google Scholar 

  21. Gerschenkron, A. (1962) The Latecomer in Historical Perspective. Cambridge: Harvard University Press.

    Google Scholar 

  22. Grann, H. (1997) The industrial symbiosis at Kalundborg, Denmark. In: D.J. Richards (ed.) The Industrial Green Game: Implications for Environmental Design and Management. Washington DC: National Academy of Engineering.

    Google Scholar 

  23. Guo, C. (2009) $2.1bn joint venture project in Tianjin eco-city, http://tianjin.chinadaily.com.cn/m/tianjin/e/eco.html, accessed 3 April 2010.

  24. Guo, W. and Feng, Y. (2007) Special economic zones and competitiveness: A case study of Shenzhen. Asian Development Bank, November, www.adb.org/prm/publications.asp, accessed 2 September 2010.

  25. Hashimoto, S. and Moriguchi, Y. (2004) Proposal of six indicators of material cycles for describing society's metabolism – From the viewpoint of material flow analysis. Resources, Conservation & Recycling 40: 185–200.

    Article  Google Scholar 

  26. Hukkinen, J. (2003) From groundless universalism to grounded generalism: Improving ecological economic indicators of human-environmental interaction. Ecological Economics 44: 11–27.

    Article  Google Scholar 

  27. Huo, C.H. and Chai, L.H. (2008) Physical principles and simulations on the structural evolution of eco-industrial systems. Journal of Cleaner Production 16: 1995–2005.

    Article  Google Scholar 

  28. Jacobsen, N.B. (2006) Industrial symbiosis in Kalundborg, Denmark. Journal of Industrial Ecology 10 (1/2): 239–255.

    Google Scholar 

  29. Jiang, Z. (2002) Working hard to create a better planet together. Presentation at the Members’ Assembly of the Second Global Environment Facility. Beijing, 16 October 2002.

  30. Lawn, P.A. (2000) Toward Sustainable Development: An Ecological Economics Approach. Boca Raton, FL: CRC.

    Google Scholar 

  31. Lee, K. and Lim, C. (2001) Technological regimes, catch-up and leapfrogging: Findings from the Korean industries. Research Policy 30 (3): 459–483.

    Article  Google Scholar 

  32. Lowe, E. (1997) Creating by-product resource exchanges: Strategies for eco-industrial parks. Journal of Cleaner Production 5 (1/2): 57–65.

    Article  Google Scholar 

  33. Mathews, J.A. (2005) The intellectual roots of latecomer industrial development. International Journal of Technology and Globalisation 1 (3/4): 433–450.

    Article  Google Scholar 

  34. Mathews, J.A. (2006) Catch-up strategies and the latecomer effect in industrial development. New Political Economy 11 (3): 313–336.

    Article  Google Scholar 

  35. Mathews, J.A. (2009) China, India and Brazil: Tiger technologies, dragon multinationals and the building of national systems of economic learning. Asian Business & Management 8 (1): 5–32.

    Article  Google Scholar 

  36. Mathews, J.A. and Tan, T. (2010) Progress towards a circular economy in China: The drivers (and inhibitors) of eco-industrial initiative. Journal of Industrial Ecology 15 (3): 435–457.

    Article  Google Scholar 

  37. McDonough, W. and Braungart, M. (1998) The NEXT industrial revolution. Atlantic Monthly 282 (October): 82–92.

    Google Scholar 

  38. MEP. (2009) Annual Progress Report for National Eco-industrial Demonstration Parks, 2008. Beijing: Ministry of Environment Protection.

  39. Moriguchi, Y. (2007) Material flow indicators to measure progress toward a sound material-cycle society. Journal of Material Cycles and Waste Management 9: 112–120.

    Article  Google Scholar 

  40. National People's Congress. (2008) Regulation on promotion of circularly economy, www.china.com.cn/news/txt/2008-08/29/content_16359646.htm, accessed 20 September 2008.

  41. NDRC (National Development and Reform Commission). (2008) 27 November, http://www.sdpc.gov.cn/, accessed 2 September 2010.

  42. Ning, W., Chen, P., Wu, F., Cockerill, C. and Deng, N. (2007) Industrial ecology education at Wuhan University. Journal of Industrial Ecology 11 (3): 147–153.

    Article  Google Scholar 

  43. OECD. (2008) Measuring Material Flows and Resource Productivity – Synthesis Report. Paris: OECD.

  44. Oh, D.S., Kim, K.B. and Jeong, S.Y. (2005) Eco-industrial park design: A Daedok Technovalley case study. Habitat International 29 (2): 269–284.

    Article  Google Scholar 

  45. Park, H.S., Rene, E.R., Choi, S.M. and Chiu, A.S.F. (2008) Strategies for sustainable development of industrial park in Ulsan, S Korea: From spontaneous evolution to systematic expansion of industrial symbiosis. Journal of Environmental Management 87: 1–13.

    Article  Google Scholar 

  46. Ren, Y. (2007) The circular economy in China. Journal of Material Cycles and Waste Management 9 (2): 121–129.

    Article  Google Scholar 

  47. Rennings, K., Brockmann, K.L. and Bergmann, H. (1997) Voluntary agreements in environmental protection: Experiences in Germany and future perspectives. Business Strategy and the Environment 6 (5): 245–263.

    Article  Google Scholar 

  48. Richards, D.J. and Pearson, G. (eds.) (1998) The Ecology of Industry: Sectors and Linkages. Washington DC: National Academy of Engineering.

    Google Scholar 

  49. Schwartz, E.J. and Steininger, K.W. (1997) Implementing nature's lesson: The industrial recycling networks enhancing regional development. Journal of Cleaner Production 5 (1/2): 47–56.

    Article  Google Scholar 

  50. Shi, H., Chertow, M. and Song, Y. (2010) Developing-country experience with eco-industrial parks: A case study of the Tianjin economic-technological development area in China. Journal of Cleaner Production 18: 191–199.

    Article  Google Scholar 

  51. Tasker, S.J. (2010) China powers booming climate change industry. Weekend Australian 18–19 September: 25.

  52. Unruh, G.C. (2000) Understanding carbon lock-in. Energy Policy 28 (12): 817–830.

    Article  Google Scholar 

  53. Unruh, G.C. and Carrillo-Hermosilla, J. (2006) Globalizing carbon lock-in. Energy Policy 34 (10): 1185–1197.

    Article  Google Scholar 

  54. Van Beers, D., Corder, G., Bossilkov, A. and Van Berkel, R. (2007) Industrial symbiosis in the Australian minerals industry: The cases of Kwinana and Gladstone. Journal of Industrial Ecology 11 (1): 55–72.

    Article  Google Scholar 

  55. Wang, Q. and Wang, H. (2007) Study in quantitative evaluating of circular economy. China Population, Resources and Environment 17 (1): 33–37.

    Article  Google Scholar 

  56. Xu, M. and Zhang, T. (2007) Material flows and economic growth in developing China. Journal of Industrial Ecology 11 (1): 121–140.

    Article  Google Scholar 

  57. Yan, M. (2005) China's establishment of a comprehensive circular economy by 2010. (in Chinese), Post-doctoral Research Station of the State Information Centre, www.china.com.cn/chinese/zhuanti/xhjj/763342.htm, accessed 20 September 2008.

  58. Yang, P.P. and Lay, B.L. (2004) Applying ecosystem concepts to the planning of industrial areas: A case study of Singapore's Jurong Island. Journal of Cleaner Production 12: 1011–1023.

    Article  Google Scholar 

  59. Yang, S.-L. and Feng, N.-P. (2008) A case study of industrial symbiosis: Nanning Sugar Co. Ltd. in China. Resources, Conservation and Recycling 52: 813–820.

    Article  Google Scholar 

  60. Yoshida, H., Shimamura, K. and Aizawa, H. (2007) 3R strategies for the establishment of an international sound material-cycle society. Journal of Material Cycles and Waste Management 9: 101–111.

    Article  Google Scholar 

  61. Yuan, Z., Bi, J. and Moriguchi, Y. (2006) The circular economy: A new development strategy in China. Journal of Industrial Ecology 10 (1–2): 4–8.

    Google Scholar 

  62. Zhang, H., Hara, K., Yabar, H., Yamaguchi, Y., Uwasu, M. and Morioka, T. (2009) Comparative analysis of socio-economic and environmental performances for Chinese EIPs: Case studies in Baotou, Suzhou and Shanghai. Sustainability Science 4: 263–279.

    Article  Google Scholar 

  63. Zhou, H. (2006) Circular economy in China and recommendations. Ecological Economy 2: 102–114.

    Google Scholar 

  64. Zhu, Q.-H., Lowe, E.A., Wei, Y.-A. and Barnes, D. (2007) Industrial symbiosis in China: A case study of the Guitan Group. Journal of Industrial Ecology 11 (1): 31–42.

    Article  Google Scholar 

  65. Zhu, R.-J. (2002) Speech at the third China symposium on environment and development of global cooperation. Beijing: 25 November 2002, http://www.people.com.cn/GB/paper39/7827/744526.html, accessed 27 July 2011.

Download references

Author information

Affiliations

  1. LUISS Guido Carli University, Viale Romania 32, Roma, 00197, Italy

    John A Mathews

  2. Macquarie Graduate School of Management, Macquarie University, Sydney, 2109, Australia

    Yiming Tang

  3. School of Management & CinIS, University of Western Sydney, Parramatta, Sydney, 2150, Australia

    Hao Tan

Authors
  1. John A Mathews
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Yiming Tang
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Hao Tan
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to John A Mathews.

Rights and permissions

Reprints and Permissions

About this article

Cite this article

Mathews, J., Tang, Y. & Tan, H. China's move to a Circular Economy as a development strategy. Asian Bus Manage 10, 463–484 (2011). https://doi.org/10.1057/abm.2011.18

Download citation

Keywords

  • China
  • Circular Economy
  • eco-industrial parks
  • eco-industrial development
  • industrial ecology
  • latecomer strategy