A Circular Economy Could Save China Five Trillion Dollars

In urban areas, individual spending has increased fourfold in 20 years. But wasteful consumption is having a negative effect on the environment and the economy (Image: Jeff Hu/Thinkstock)
China could see big improvements in air quality, a reduction in carbon emissions and huge savings for business and households worth 32 trillion Yuan (US$5.1 trillion) by 2030 if it moved to a circular economy, according to a recent report from the Ellen MacArthur Foundation.

As China’s economy grows people are consuming a lot more. In urban areas, the amount people spent increased four times in real terms from 1995-2014 to about 17,000 Yuan (US$2,700) a year, says the report. This will grow even more as rapid urbanization continues.