This Law is formulated for the purpose of promoting the development of the circular economy, improving the resource utilization efficiency, protecting and improving the environment and realizing sustainable development. The Law is consists of 7 Chapters: Chapter I General Principles; Chapter II Basic Management Rules; Chapter III Reduction; Chapter IV Reusing and Recycling; Chapter V Incentive Measures; Chapter VI Legal Liabilities; Chapter VII Supplementary Provisions.
The term circular economy as mentioned in the the Law is a generic term for the reducing, reusing and recycling activities conducted in the process of production, circulation and consumption. The state shall work out industrial policies in accordance with the requirements for the development of a circular economy. The state encourages and supports the research, development and promotion of science and technology relating to circular economy, and encourages the publicity and education of circular economy, the popularization of scientific knowledge about and international cooperation in the development of circular economy. The people's governments at or above the county level shall set up an objective responsibility system for the development of circular economy and take such measures as planning, finance, investment and government procurement to promote the development of circular economy. Enterprises producing products or packages listed in the catalogue of articles subject to compulsory recycle must be responsible for recycling deserted products or packages. For those usable, the producers thereof shall be responsible for using them, while for those products which are inappropriate for reutilization due to the absence of technical or economic conditions, the producers shall make them harmless.