China Promulgates “Ecological Environment Code”: Part 9—Circular Economy Development 
On March 12, 2026, the 14th National People’s Congress officially promulgated the Ecological Environment Code of the People’s Republic of China, China’s first comprehensive legal code in the field of environmental protection. The Code consists of 1,241 articles across five books: General Provisions, Pollution Prevention and Control, Ecological Protection, Green and Low-Carbon Development, and Legal Liability and Supplementary Provisions.
Requirements regarding the circular economy are stipulated in Chapter 2 (Circular Economy Development) of Book 4 (Green and Low-Carbon Development). These focus primarily on two aspects: Corporate Cleaner Production (e.g., eco-design, packaging reduction) and Product Recycling (e.g., promotion of remanufactured products, use of recycled materials). Notably, the “Mandatory Recycled Content System,” which drew significant attention during the drafting stage, was modified to a “Recommended System” in the final version. The State now encourages producers of automobiles, electrical and electronic equipment, and other products to increase their use of recycled materials through established tax incentives.
Overview of the “Circular Economy Development” Chapter
Chapter 2 of Book 4 is structured as follows:
- Section 1: General Provisions
- Section 2: Cleaner Production
- Section 3: Recycling and Utilization of Waste
- Section 4: Green Consumption
Corporate Cleaner Production: Comparison with Existing Laws
Section 2 (Cleaner Production) establishes requirements for domestic production enterprises regarding the adoption of non-toxic or low-toxicity raw materials, resource conservation, reduction of pollutants and greenhouse gas emissions, eco-design, and green/lightweight packaging. While largely following the Cleaner Production Promotion Law, several provisions have been updated (amendments are underlined below).
| Requirement | Cleaner Production Promotion Law | Ecological Environment Code |
|---|---|---|
| Eco-Design of Products | Article 20: For products and packaging, design plans that are non-toxic, harmless, easily degradable, and easy to recycle shall be prioritized throughout the lifecycle, considering impacts on human health and the environment. | Article 972: The State encourages producers and operators to implement and promote the application of eco-design.
In the design of electrical and electronic products, automobiles, and other products, design plans that are non-toxic, harmless, easily degradable, and easy to recycle shall be prioritized throughout the lifecycle and the reduction and substitution of hazardous substances at the source shall be strengthened in accordance with State regulations. |
| Packaging Reduction | Article 20: Enterprises shall package products reasonably. The material, structure, and cost of packaging shall be compatible with the quality, specifications, and cost of the contents to reduce waste and avoid excessive packaging. | Article 973: The State encourages producers and operators to use green packaging and reduce packaging volume.
Producers and operators shall package products reasonably, comply with mandatory standards restricting excessive packaging of commodities, reduce the generation of packaging waste, and shall not engage in excessive packaging. Material, structure, and cost must remain compatible with the product. |
Product Recycling: Comparison with Existing Laws
Section 3 (Recycling and Utilization of Waste) regulates the recycling of industrial waste as well as products and packaging. It inherits much from the Solid Waste Law and Circular Economy Promotion Law but introduces several new items (amendments/additions are underlined).
| Requirement | Existing Laws (Solid Waste / Circular Economy) | Ecological Environment Code |
|---|---|---|
| Mandatory Recycling of Products/Packaging | Solid Waste Law Art. 68: Entities manufacturing, selling, or importing products/packaging in the Mandatory Recycling Catalogue* must collect them according to State regulations. | Article 977: Entities must collect products/packaging in the Mandatory Recycling List. For those that can be utilized, the enterprise is responsible for utilization; for those unsuitable for utilization due to technical or economic conditions, the enterprise is responsible for harmless disposal. |
| Low-Value Recyclables | No specific provision. | Article 985: The State shall improve the directory of low-value recyclables and promote the recycling of waste glass, waste plastics, waste textiles, etc. |
| Remanufactured Products | Circular Economy Law Art. 40: The State supports remanufacturing of auto parts, construction machinery, etc. Products must meet quality standards and be clearly labeled as “remanufactured.” | Article 989: The State supports remanufacturing of auto parts, construction machinery, machine tools, and office equipment. It shall promote high-end remanufacturing in wind power, photovoltaics, and aviation, and encourage the use of remanufactured products. Products must meet quality standards and be clearly labeled as “remanufactured.” |
| Recycled Material Content | No specific provision. | Article 990: The State encourages the promotion and use of recycled materials, will establish a certification system, and supports producers of automobiles and electronics in increasing the proportion of recycled materials.
Article 991: Tax incentives shall be provided for the utilization of waste and products made from recovered raw materials. |
*Note: As of now, the “Mandatory Recycling Catalogue” has not yet been officially promulgated.
Implementation and Repeal of Existing Laws
The Code takes effect on August 15, 2026. Upon its enforcement, the Cleaner Production Promotion Law and the Solid Waste Pollution Prevention and Control Law will be repealed and integrated into the Code. However, the Circular Economy Promotion Law will remain in effect as supplementary legislation.
The original texts of the above-mentioned regulations are available at the following URL.
- Ecological Environment Code
http://lianghui.people.com.cn/2026/n1/2026/0313/c461827-40680958.html - Cleaner Production Promotion Law
https://www.mee.gov.cn/ywgz/fgbz/fl/201904/t20190428_701287.shtml - Solid Waste Pollution Prevention and Control Law
https://www.mee.gov.cn/ywgz/fgbz/fl/202004/t20200430_777580.shtml - Circular Economy Promotion Law
https://www.mee.gov.cn/ywgz/fgbz/fl/201811/t20181114_673624.shtml
