Download Circular Economy and Harmonious Society in China

Circular Economy and Harmonious Society in China
YAN Jin
Henan University of Urban Construction P.R.China, 467000
[email protected]
Abstract: Harmonious society is a hot topic in China. The proposed objective of building a harmonious
society encompasses enhanced sustainability, an improved natural environment, increased efficiency of
resource use, and harmonious relationships between humans and nature. In 2005, the Chinese
government requested integration of the harmonious society and circular economy into the 11th
Five-year Planning Outline for National Economic and Social Development, which was published in
2006. Promoting a circular economy has been identified as a useful way to obtain the goal of
harmonious society.
The paper is divided into three sections. In the first section, the paper specifies the definition of the
harmonious society and circular economy. In the second section, the paper analyses that circular
economy is the economic base of harmonious society. In the third section, the paper gives suggestions as
to how to promote the circular economy.
Keywords: harmonious society, circular economy, relationship, implementation
1 Introduction
This paper tries to answer the question of the relationship between the implementation of circular
economy and obtaining the goal of harmonious society. The public is more aware of the meaning of the
harmonious society than that of the circular economy .The purpose of this paper is to make the public
aware three questions: what is circular economy? What is the relationship between circular economy
and the harmonious society? How to implement the circular economy in China?
Harmonious society is our country’s distinctive definition of our future goal, and the term “circular
economy” is not used in other developed countries. But relevant concepts and activities about circular
economy can be found in other countries such as Germany and Japan. But the concept of the circular
economy in China has its own understandings and focuses of practice compared with that of Germany
and Japan.
The large amount of waste caused by the post industrialization becomes a crucial problem in
industrialized countries after industrial pollution and areas of municipal pollution are generally resolved.
In this situation, waste of the consumption areas’ reduction, reuse, and recycling would certainly be the
starting point and focus of circular economy initiatives in developed countries. At the initial stage in the
mid-1990s, for example, the circular economy in Germany was often called “the waste economy.” The
concept of the recycling society in Japan was also oriented toward the issues of industrial and municipal
wastes.
In comparison, China is just reaching the mid-industrialization stage, symbolized by the heavy chemical
industry. On the one hand, China is facing compound environmental issues at a low developmental stage,
including various cases of pollution and ecological degradation as well as global environmental
problems. On the other hand, severe environmental pollution and shortages of natural resources
constitute a bottleneck to economic growth in China. Such a situation determines that the pressing
objective of the circular economy in China has to mitigate the industrial pollution intensity and the
consumption intensities of resources and energy in the area of production. Relevant activities in the
areas of both production and consumption constitute an overall picture of circular economy practice in
China, rather than the waste-based focus in Germany and Japan at the early stage of circular economic
activities.
However, from a broad and evolutionary perspective, there are obvious convergent trends among these
countries. Surely we can draw experiences from these countries.
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2 The Concept of Harmonious Society and Circular Economy
It is well known that economic development has been a central policy in China since implementation of
the policy of “reform and opening up”. Consequently, China has achieved the most remarkable
economic development. However, this central policy has often been interpreted as pursuing GDP growth
at all costs, while sacrificing environmental resources and social equity. In response to the negative
impacts of GDP-oriented development, in 2003 the Chinese government inaugurated a development
philosophy based on scientific concepts of development that is people-oriented through a comprehensive,
coordinated, and sustainable approach to economic, social, and environmental development.
In 2006 the Chinese government set up a strategic goal of development: building a harmonious society.
The proposed objective of building a harmonious society encompasses enhanced sustainability, an
improved natural environment, increased efficiency of resource use, and harmonious relationships
between humans and nature, putting our entire society on a path of development characterized by good
productivity, quality of life, and an eco-friendly environment. Under the scientific development concept
and harmonious society goal, the two most significant tasks in China for the next few decades are
building a resource-saving and environmentally friendly society and following a new road to
industrialization with five criteria: technological orientation, low resource consumption, low pollution,
high economic benefit, and a full use of human resources.
The circular economy, which is a mode of economic development based on ecological circulation of
natural materials, requires compliance with ecological laws and sound utilization of natural resources to
achieve economic development. It is, essentially, an ecological economy that follows the principles of
‘‘reducing resource use, reusing, and recycling’’, with the objectives of reducing the resources that enter
the production process, effecting multiple use of the same resources in different ways, and reusing waste
from one facility as a resource for other facilities. In this mode, with materials going through a feedback
process of ‘‘resource–product–renewed resource’’, the ultimate objective of optimum production,
optimized consumption and minimum waste can be achieved in production .the circular economy
defines its mission as resolving the problems from the perspective of reducing the material flux and
making the material flow balanced between the ecosystem and the socioeconomic system. With its own
theoretical basis in ecology and economics, the circular economy certainly has its unique principles,
methods, and indicators. The 3Rs principle – well known as reduce, reuse, and recycle – is a good
principle guiding how to implement the circular economy in practice.
3 The Circular Economy is the Economic Foundation of Harmonious Society
3.1 Natural resource shortages and heavy environmental pollution: a serious bottleneck to
harmonious society
The development of circular economy is to achieve harmony between human being and the nature.
Harmony between man and nature is an important foundation for a harmonious society.
Since the industrial revolution, with the rapid expansion of population, the rapid development of science
and technology, the relationship between human and nature is becoming a discord. Facts have proved
that the man’s social ‘progress’ at the cost of the environment will eventually pay a heavy price. the
increasingly serious environmental problems and ecological crisis directly to the human society not only
brought disasters such as the impact of the sharp decline of forests, water Pollution, urban waste, acid
rain, dust storms, and so on also caused a lot of social contradictions and conflicts, such as international
environmental disputes, environmental demonstrations and processions, social organization or
individual disputes between the environment and resources for the war, and so on.
We have adopted many approaches and measures to resolve the problems of natural resource shortages
and environmental pollution over a long period. Measures targeting rising efficiencies of resource
consumption and environmental protection along with economic growth include restructuring industrial
sectors; relocating polluting industries; the shutting down and phasing out enterprises, technologies, and
facilities with high energy use and high pollution levels; and reducing preferential tax for exported
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products associated with high energy consumption and heavy pollution. In addition, the installation of
abatement facilities and prevention policies, such as environmental impact assessment and cleaner
production, are implemented to mitigate pollution. However, the reality suggests that these approaches
and measures are insufficient to effectively resolve the problems of natural resource shortages and
environmental degradation.
Adjusting the economic behavior of people is the most basic ways to coordinate the relationship
between man and nature. At present, a lot of disharmony between man and the nature are in fact derived
from the current extensive mode of economic growth.
3.2 A solution to overcome the bottleneck--The promotion of the circular economy
Natural resource shortages occur due to the limited supply capacity of the ecosystem in the face of ever
increasing demands from socioeconomic activities, and similarly, pollution results from the wastes
discharged from socioeconomic activities at levels higher than the capacity of the ecosystem to safely
accommodate. In fact, the unbalanced material exchange between the ecosystem and the socioeconomic
system mainly has taken place at the stage of industrialization. The uniqueness of the circular economy
lies in its unique approaches and 3R principles. The approach includes: restructuring the material flow
from the linear approach to a circular approach, i.e., from the resources to the products and to the wastes,
then further translating the wastes to new resources and raising the efficiency of resource utilization and
reducing the intensity of emissions. This is the unique essential which makes the circular economy
widely accepted as a model for changing traditional production and consumption patterns to a
sustainable pattern. The 3R principles refer to reduce, reuse and recycle. Reducing resource use means
achieving the objectives set for production and consumption by using minimal raw materials and energy
and by cutting pollution at the very outset of economic activity. In production, this principle tends to be
reflected in compact and lightweight products, simplified packaging, and maximization of product
functions, all with a view to reducing waste discharge. ‘‘Reusing’’ refers to the reuse of a product at
other facilities after its initial consumption rather than letting it become toxic waste. Recycling means
the use of a product many times in its primary state rather than one-off use. Meanwhile, products and
components in a product series and their packaging must be compatible with one another to enable their
reuse when they are upgraded. These principles, as parts of the whole, occupy different places in terms
of importance, with reduction of resource use as the leading principle within a circular economy system.
Through the development of circular economy, the demand for natural resources and the ecological
environment can be minimized. At the same time the negative impact of the output of the pressure on
resources and environment can be effectively alleviated. This shows that the circular economy is the
economic base to build a harmonious society. It is the most fundamental way to achieve harmony
between man and nature.
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4 How to Put a Circular Economy into Practice in China
As the largest developing nation in the world, China, with its low per-capita resources and
environmental capacity, still has a long way to go before achieving harmonious relationships between
human beings and the environment. It is essential for China to further reform its economic structure and
even to shift to a new growth model. Under these conditions, China must prepare itself for a long and
narrow road that adheres to circular economy practices now and for many years to come. The
importance of a development strategy is very important. Different opinions of development determine
different development paths, models, and strategies.
4.1 Pilot and demonstration programs
Practical implementation of a circular economy has many aspects. Vertically it involves enterprises,
industrial parks, cities, and regions. To put a circular economy into practice, there is a need for
expanded pilot and demonstration programs and for exploration of effective circular economy models
that ultimately facilitate the overall development of such an economy.
The circular economy should be implemented first at the level of enterprises, then in industrial parks,
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then in cities and regions, moving from the micro to the macro level. Each of these levels serves as the
basis for the next level above, and as a platform for the level immediately below.
At the enterprise level, implementation of cleaner production is a core text of the circular economy.
Closed material flows that are technologically and economically reasonable, a step-by-step full use of
energy, and reducing the use of toxic materials as much as possible constitute the three key tasks for
enterprise-level cleaner production, so as to raise the efficiency of resource utilization and to reduce or
avoid emissions.
At the industrial park level, material flow and energy flow must be redesigned in line with the principles
of the circular economy. Within a park, wastes or byproducts of one facility should become raw material
or input for another by means of waste exchange, clean production, and other measures, achieving the
closed circuit circulation of materials and the multi-level use of energy, forming an interdependent
ecological industrial system, maximizing use of materials and energy, and minimizing discharge of
wastes, all adding value to the overall resources and energy within the park. Such parks feature
horizontal coupling, vertical closeness, regional integration, flexible structures, sharing of infrastructure,
and smooth information exchange.
At the regional level, i.e., cities and provinces, in addition to cleaner production and eco-industrial parks,
another three categories of activities arise in the scope of regional development of a circular economy:
First, infrastructure development is indispensable. This includes the building of water-recycling systems,
clean energy systems, and clean mass transit systems. Second, development of eco-farming, which has
had a long history in China and is rich in diverse models such as the planting–livestock
breeding/fishery–food manufacturing model and the livestock–methane–fertilizer model, and the
eco-food and organic food base is essential; Third, green distribution and consumption should be
encouraged and practiced. Activities for environmentally friendly consumption, including public green
procurement, energy saving in governmental offices and households, green communities, green hotels
and restaurants, green buildings, and certifications for environmentally friendly and energy-saving
products.
4.2 Proprietary technological innovation as backup
Technology is a key factor in the development of a circular economy. Each of the three circular
economy principles already mentioned requires advanced technology and the development and updating
of facilities and equipment. The government needs to continue its support for the major technologies
necessary for a circular economy, identifying key technological areas and projects in line with current
and long-term requirements for the economy and lending support to research into energy saving,
alternatives, and recycling, thus boosting the nation’s capacity in proprietary technological innovation.
Enterprises, the key players in this respect, need to incorporate circular economy philosophies and
approaches into their R&D of new products and processes, to boost their innovative capacity.
Research attention and governmental input should be devoted to the followings:
(1) processes that feature energy saving, material saving, and reduced or no pollution, including clean
production processes;(2) technologies that boost the lifespan of materials;(3) research into new materials
as alternatives to toxic and polluting materials;(4) resource-renewing technologies to boost energy
efficiency, for example those that recover resources from used household electrical appliances, batteries,
and computers;(5) development of forecasting models to determine the correlation among such factors
as economic gains, recycling rates, costs for renewing resources and pricing for products;
4.3 Promoting legislation
Barriers exist at the initial stage of China’s attempts to achieve a circular economy, barriers that require
administrative and legal means to remove. Legal measures are formal, consistent, compulsory, open, and
authoritative, thus playing an indispensable and irreplaceable role. Legislation is therefore needed for
circular economy development. In July 2006, the Standing Committee of the National People’s
Congress of China initiated legislation procedures to draft a proposal concerning the circular economy.
The drafting group is now in operation. The outline of the 11th Five-Year Plan for the economic and
social development of China also suggests and supports legislation regarding a circular economy. It
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seems the government is committed to a circular economy by legislation. Circular economy legislation
must take the principles below into account.
4.3.1 Consideration of economic measures
International practices reveal that economic measures remain one of the most effective means of
conserving the environment and resources. In view of this, the application of economic measures must
be promoted by inclusion in circular economy legislation. In addition to current measures, for example
pricing (the price of electricity used by those industrial enterprises with high energy use and high
pollution production is higher than the average price), interest rates, and credit and loans, new measures
must be explored, for example environmental taxes, financial incentives, insurance for liability resulting
from environmental damage, and environmental labeling, all of which should be included in legislation,
when appropriate, to better facilitate circular economy development.
4.3.2 Drawing on foreign experience
Environmental problems in one nation may have something in common with those in others. China’s
lack of experience in circular economy legislation makes it necessary to draw on foreign experience.
Whatever works should be taken into account. China can learn from developed nations in taking a more
concrete and specific approach to drafting legal clauses, taking into consideration expected problems
and countermeasures.
5 Conclusion
One important aspect of harmonious society is to maintain harmony between man and nature, but our
present economic model has exerted great negative effect to the environment, and our natural resources
can not sustain our future development unless we change our economic model. Circular economy is
introduced in this paper to make the public more aware of this eco-economy.
Development of a circular economy offers a path toward obtaining the goal of harmonious society.
Meanwhile it can solve the environmental problems affecting human health and social development,
fostering a growth model characterized by resource conservation, and encouraging healthy consumption
behavior, all via a shift in growth models and protection of the natural environment. To build a
resource-conserving, environment-friendly, economically efficient, and harmonious society, China
needs to be active in its practice of a circular economy. After analyses the significance of circular
economy in its promotion of harmonious society, the paper gives suggestions as to how to promote
circular economy in China.
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