Article 27 The state encourages and supports the use of recycled water. Areas with the conditions for using recycled water shall restrict or forbid the use of tap water for urban road cleaning, planting and landscape purposes.

Article 28 The state sets restrictions on the production and distribution of one-off consumption goods under the precondition of safeguarding product security and sanitation. The specific directory of the one-off consumption goods under restriction shall be formulated by the administrative department of circular economy development under the State Council together with the public finance department and the environmental protection department under the State Council.
For the production and distribution of the one-off consumption goods listed in the directory as mentioned in the preceding paragraph, the public finance department, the tax department and the foreign trade department under the State Council shall work out corresponding restrictive tax and export policies.

Chapter IV Reusing and Recycling

Article 29 The people's governments at or above the county level shall make overall plans on the geographical distribution of the different sectors of the economy in their respective regions, reasonably readjust the industrial structure and compel enterprises to cooperate in such areas as the comprehensive utilization of resources so as to realize the efficient utilization and recycling of resources.
An industrial park or zone shall organize the enterprises in the park or zone to make comprehensive utilization of resources so as to promote the development of circular economy.
The state encourages enterprises in various industrial parks and zones to exchange wastes for purposes of utilization, cascade utilization of energy, intensive utilization of land, classified and recycled utilization of water, and joint use of infrastructure and other relevant facilities.
An environmental impact assessment shall be conducted before any industrial park or zone is built or rebuilt, and measures for ecological protection and pollution control shall be taken to ensure that the environmental quality of that region reaches the prescribed standards.

Article 30 Enterprises shall, in accordance with the relevant state provisions, make comprehensive utilization of the fly ash, coal slack, tailings, mullock, waste materials, waste gas and other industrial wastes generated in the production process.

Article 31 Enterprises shall develop an interconnected water use system and a circulatory water use system so as to improve the repeated use of water.
Enterprises shall use advanced technologies, techniques and equipment for the circulatory use of the waste water generated in the production process.

Article 32 Enterprises shall use advanced or applicable recovery technologies, techniques and equipment to make comprehensive utilization of the waste heat and pressure generated in the production process.
To build a grid-connected power generation project with waste heat, waste pressure, coal bed gas, coal slack, slime, refuse and other low-calorie fuels, the parties concerned shall get an administrative permit or file the project for archival purposes in accordance with laws and the provisions of the State Council. A grid enterprise shall, according to the relevant state provisions, conclude a grid connection agreement with an enterprise which generates power by comprehensive utilization of resources, provide grid access services and purchase the on-grid electricity of a grid-connected power generation project in full amount.

Article 33 A construction entity shall make comprehensive utilization of the construction wastes generated in the construction process. Where any construction entity does not have the conditions for comprehensive utilization, it shall entrust a producer or operator with such conditions to make comprehensive utilization or harmless disposal of construction wastes.

Article 34 The state encourages agricultural producers and the relevant enterprises to take advantage of advanced or applicable technologies to make comprehensive utilization of crop straws, livestock and poultry excrements, byproducts of the agro-product processing industry and waste agricultural films, and develop and use biogas and other biomass energies.

Article 35 The people's governments at or above the county level and the administrative departments of forestry thereunder shall make vigorous efforts to develop ecology-friendly forestry, encourage forestry producers and relevant enterprises to use timber-saving technologies and timber-replacing technologies, and make comprehensive utilization of forestry wastes, wood castoffs, small firewood and desert bush so as to improve the comprehensive utilization rate of wood.

Article 36 The state upholds producers and operators to set up an industrial waste information exchange system for enterprises to better exchange information about industrial wastes.
Enterprises without the conditions for making comprehensive utilization of the wastes generated in the production process shall offer them to those that have the conditions to make comprehensive utilization.

Article 37 The state encourages and advocates the construction of a waste recovery system.
The local people's governments shall, according to the urban and rural planning, reasonably position the waste recycling outlets and trading markets, and support waste recycling enterprises and other organizations in the collection, storage, transport and information exchange of wastes.
Waste trading markets shall conform to the state provisions on environmental protection, security and fire control.

Article 38 The dismantlement or reutilization of waste electric apparatuses and electronic products, motor vehicles and ships discarded as useless, waste tyres, waste lead-acid battery and other specific products shall be conducted in accordance with the relevant laws and administrative regulations.

Article 39 Any recycled electric apparatus or electronic product to be sold after repair must meet the standards for re-utilized products and be labeled it as a re-utilized product at an eye-catching place.
Any recycled electric apparatus or electronic product which needs to be dismantled or re-utilized shall be delivered or sold to a dismantling enterprise with corresponding conditions.

Article 40 The state upholds enterprises to reproduce the parts and components of motor vehicles, engineering equipment, machine tools, etc. and to renew tyres.
Any reproduced or renewed product to be sold shall satisfy the prescribed quality standards of the state and be labeled as a reproduced or renewed product at an eye-catching place.

Article 41 The people's governments at or above the county level shall make overall plans on building facilities for the sorting collection and recycle of domestic wastes in urban and rural areas, and set up a sorting collection and recycling system and constantly improve it so as to improve the rate of recycling domestic wastes.
The people's governments at or above the county level shall uphold enterprises to build facilities for the reutilization and disposal of sewage sludge so as to improve the comprehensive utilization efficiency of sewage sludge and prevent secondary pollution.

Chapter V Incentive Measures

Article 42 The State Council and the people's governments of the provinces, autonomous regions and municipalities directly under the Central Government shall set up funds specially for the development of circular economy so as to support the research and development of the science and technology relating to circular economy, the demonstration and promotion of technologies and products of circular economy, the implementation of important circular economy projects and information services for the development of circular economy. The specific measures shall be formulated by the public finance department under the State Council together with the administrative department of circular economy development and other competent departments under the State Council.

Article 43 The State Council, the people's governments of the provinces, autonomous regions and municipalities directly under the Central Government and the relevant departments thereof shall bring the independent innovation research, application demonstration and industrialization of the key scientific and technological task force projects of circular economy into the state or provincial scientific and technological development plans or high-tech industry development plans, and allocate financial resources to support the implementation thereof.
Where any entity uses funds from the public finance to introduce important technologies or equipment of circular economy, it shall work out a digestion, absorption and innovation plan, submit it to the competent department for examination and approval and to oversee its implementation. The competent department shall set up a coordination mechanism in light of the actual needs, make overall plans and coordination on the introduction, digestion, absorption and innovation of important technologies and equipment, and offer certain financial support.

Article 44 The state shall offer tax preferences to industrial activities promoting the development of circular economy, and use tax measures to encourage the import of advanced energy-saving, water-saving and material-saving technologies, equipment and products and limit the export of products with high energy-consumption or serious pollution. The specific measures shall be formulated by the public finance department and the tax department under the State Council.
Enterprises using or producing the technologies, techniques or products listed in the catalogue of clean production, the catalogue of comprehensive utilization of resources or any other encouraged catalogue shall enjoy tax preferences in accordance with the relevant state provisions.

(To be continued.)

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