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1CirculareconomyandChina’sNewIndustrialization1DrZhuDajian,Director,SustainableDevelopmentandManagementInstitute,TongjiUniversityAbstractThemainpurposeofthisarticleistointroducetherealizationofcirculareconomyintheindustrialproductionsystem.InsummarizingthedrawbacksofChina’straditionalindustrializationandforecastingconstraintsonresourcesinthefuturedevelopmentofindustrialization,itpointsoutthatdevelopmentofcirculareconomyisthenewpathofindustrializationinChina.Circulareconomyintheindustrialsystemfallsintothreecategories,namelydevelopingecologyinenterprises,buildingeco-industrialparksanddeveloping“venousindustry”ineverystratumofsociety.Thisarticleexplainsthegeneralsituationandthedevelopmenttrendineachcategory.ItintroducessomesuccessfulcasesinChina,whichserveasexamplesforthedevelopmentofnewindustrialization.KeywordsCircularEconomy,NewIndustrialization,Eco-IndustrialParks,VenousIndustry1.DevelopmentofChina’sIndustrializationinNeedofCircularEconomy1.1TraditionalIndustrializationinChina–HistoryandAnalysisofProblemsIndustrializationinChinastartedinthe40softhe18thcentury,whichwasmorethanonehundredyearsbeforethefoundingofthePeople’sRepublicofChina.Sincethendevelopmenthadbeenveryslowuntil1949,withGDPinindustriesofonly12.6%andemploymentinindustriesofonly2%.Chinawasstillabackwardagriculturalcountry.Sincethe1940s,industriesoflarge-scalemachineryproductionandmodernnationalindustrieshademerged,andafewmovementsforindustrializationhadalsobeenrun.However,duetomanytimesofwarfarewhichbroughtaboutsocialinstabilities,nosubstantialachievementshadbeenmade.Fromthetimeofthe“FirstFive-YearPlan”(1953-57)tothetimejustbeforetheOpenDoorPolicy–onlya20to30-yearperiod–theinitialtargetofthecountry’sindustrializationwasbasicallyreached,buildingupaninfantstageofnationaleconomyandindustrialsystemwithcomprehensivesegments.1ThisarticleisanexcerptofChapter7,CircularEconomyandSustainableDevelopmentinChina,editedbyZhuDajian,publishedbySciencePublicationCo.,Beijing,2007;authorizationhasbeenobtainedfromDrZhuforextraction.2However,Chinahaspaidalotduringtheprocessoftraditionalindustrialization.Problemssuchasahighlycentralizedplannedeconomy,unclearpropertyrightsandlowdegreeofopennesstotheworldhavebeennoted.Thismodeoftraditionaleconomyisalsobasedonlargeconsumptionofmineralandenergyresources,leadingtoecologicaldisruptionsandenvironmentalpollution.Duetoblinddevotioninthepursuitoffasteconomicdevelopment,manyheavilypollutingindustriesandenterprisesofhighconsumptionofresourcesaggravatedthesevereenvironmentalproblems,suchaspoorqualityofair,waterpollutionaswellasexcessiveminingofmineralresourcesandenergy.Moreover,excessivecuttingoftimberinforestshascausedsoilerosionandriverbreakage.Asalotofpeopleremaininagriculturalpopulationandstayinvillagesandthestateinvestmentinagriculturehasreceded,landuseisinmuchgreaterdemand,causingseriousdesertification.Furthermore,theproblemsemergingduringChina’sdevelopmentsuchaslackofco-ordinationinurbanandruraldevelopment,unbalanceddevelopmentofdifferentregions,discordineconomicdevelopmentofsocietyaswellasirrationalstructuresofproduction.Oneofthemaincausesoftheseproblemsisalsotheinappropriatedirectionofindustrialization.1.2FutureDevelopmentofIndustrialization–ConstraintsinResourcesandProblemsintheEnvironmentAccordingtotheBulletinoftheStatisticsofNationalEconomyandSocialDevelopment2004,thegovernmenthasputgreatereffortsinconservationofresourcesandenvironment,andachievedacertainextentofprogressineffectiveuseofresourcesandenvironmentprotection.However,thehighconsumptionandwastageofresourcesstillgreatlyhinderseconomicdevelopment,causingalotofpressureinenvironmentprotection.Asaresult,ourresourcesandtheenvironmentareapricewepayforeconomicdevelopment.Landresources:Atpresent,populationinChinahasreached1.3billion,22%oftheworld’stotal.However,theaveragefarmlandpercapitaisonly1.43mu,lessthan40%oftheworld’saverage.Besidesthis,thetotalareaofsoilerosionis3.56millionkm2,whichis37.1%ofthetotallandinthecountry.Althoughmanagementoflandresourcesimprovedin2004,whichhasfurtherhaltedusingfarmlandforconstructions,thesituationoffarmlandconservationisstillcritical.Waterresources:In2004,thequalityofwaterresourcesfellwhilethetotalwaterconsumptionwasconstantlyincreasing,leadingtoadecreaseofwaterresourcespercapitaandfurtherrevealingtheconflictbetweensupplyanddemandofwaterresources.Theamountofwaterresourcespercapitawas1,850m3,adecreaseof12.9%fromthepreviousyear.Theannualaveragerainfallwas609mm,adecreaseof4.5%,buttheconsumptionpercapitawas426m3,anincreaseof3.4%.Inthewholecountry,79citiessufferedfromwatershortage,with23.4millionpeopleand313millionlargefarmanimalsintemporaryshortageofdrinkingwater.Fromthesefigures,itisobviousthatshortageofwaterresourcesexistsinChina.Therefore,moreeffortsshouldbeputinproperplanningandconservationofwaterresources,promotingthewater-savingsocietyaswellasimplementingmorepreventivemeasuresagainstpollution.Eco-construction:TheresultoftheSixthCensusonForestResourcesoftheCountryin2004revealsthatthetotalareaofforestswas0.175billionhectares,coverin