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  Abstract. China has achieved remarkable economic success since reform and opening, but it is based on high consumption of resource, high pollution of environment and low efficiency of production, the deterioration of ecological environment has eventually become the constraint of economic development. Developing circular economy is an effective way to alleviate resource conflicts. It can solve the environmental pollution problems radically, speed up the harmonious and sustainable development of economy and environment. This paper based on the current situation of Anhui province, analysis the problems in process and put forward suggestions and countermeasures for the development of circular economy in China.
  Key words: circular economy; ecological environment; environment pollution; clean production
  
  1.Introduction
  China has achieved remarkable economic success since reform and opening, but the traditional economic development model is based on high consumption of resource, high pollution of environment and low efficiency of production. Behind the rapid economy growth is the unreasonable resource exploitation and serious damage to ecological environment. Coping with this situation, China has introduced the idea of circular economy since the 1990’s. Anhui Province is one of the earliest provinces which carry out the research on developing circular economy theory and practical work. Developing circular economy is an effective way to alleviate resource conflicts. It can solve the environmental pollution problems radically, speed up the development of Anhui economy and environment harmoniously and sustainably.
  
  2.The Definition and the Importance of Developing Circular Economy
  The core of “circular economy” is efficient resources utilization and recycling, it takes “three R” (Reduce Reuse Recycle) as the principle, low emission and high efficiency with low consumption are its basic features; eco-industry chain is its development carrier; clean production is its important methods. By all these means, the aim of developing circular economy is to achieve the effective utilization of material resources and the sustainable development of economy and ecology. It could low the impact on natural environment caused by economic activity down to the smallest possible level. Besides, circular economy is also the advanced economy which pursuits a greater economic efficiency, consumption of less resources with less environmental pollution.So, promoting the development of circular economy has a great significance to China in present
  First of all, the development of circular economy can achieve energy saving from the source. The basic goal of circular economy is to prevent waste discharges from the source and protect environment. For enterprises, the implementation of energy saving is involved with economic benefits. Adopting the circular economy mode can improve the economic benefits of energy conservation.
  Secondly, the development of circular economy can promote the rapid development of related industries. Developing circular economy, not only changed the traditional mode of economic growth, but also brought in new development opportunities. It midwifes a series of new industries, such as health industry, environmental industry, creative industry and service economy.
  Finally, the development of circular economy can also improve resource efficiency. Improving resource efficiency means make full use of human resources in order to reduce the natural resources consumption, environmental pollution and ecological damage. It doubled economic growth with reducing the cost of the resource. It has important practical significance especially to country with cheap labor force like China
  In summary, circular economy is a high unity to build resource-saving and environment-friendly society. Once building up circular economy system within the whole society andincorporating economic development, various social activities and consumption patterns into circular economy system, we can not only increase the economic output but also achieve the purpose of energy saving, effective protecting our environment by efficient utilization of resources and minimization of pollution.
  
  3.Present Situation and Problems of Circular Economy Development in Anhui Province
  Anhui Province is one of the earliest provinces which carry out the research on developing circular economy theory and practical work. The development of circular economy in Anhui faced with the problems such as large population, lack of resources, supply and demand gap, environment pollution and other issues. Now it is a crucial period for economic development in Anhui, developing circular economy is a necessary requirement for expanding domestic demand and maintaining growth, it is also an effective way to expand employment and improve people"s livelihood.
  3.1Rapid Emergence of Fast-growing and Leading Enterprises in Circular Economy Areas
  In recent years, a number of leading enterprises and famous products emerged in the field of circular economy in Anhui province, for example,Anhui Conch Kawasaki Energy Manufacturing Company developed the technology of cogeneration and energy-saving equipments, not only reduced the energy consumption of the enterprises themselves, but also boosted the pace of the entire cement industry of energy saving (pic1).
  Picture 1: The world"s largest cement waste heat power generation system has been built in Tongling Conch in Oct, 2007
  
  
  Anhui Guo Zhen Environmental Protection now has the only manufacturing facility in China capable of producing the entire set of equipment with capacity of 50,000-400,000 ton/day.It has supplied over 8000 sets of equipment to over 800 plants and its equipments are sold all over China, some are even exported to Europe, Africa and South Ease Asia. Its production capacity and technical level have long been the best in the industry(pic2). Chizhou Act-blue Energy Saving Co. ltd developed diesel engine exhaust treatment system called "oxidized catalytic converter" which meets the European III emission standards and has passed the state certification test already.
  Picture 2: BBQ series of high-speed surface aeration machine
  The company established an advanced hydraulic model which has been put into use by sewage treatment plant already. It is based on their own development and through several generations of prototype testing
  
  
  3.2Constructing a Number of Circular Economy Bases and Eco-industrial Demonstration Parks.
  Since 2005, Anhui Province has started several different types of circular economy pilot projects, including 111 provincial pilot projects, 10 national pilot projects, among those pilots , Anhui Tongling Nonferrous Metals (Group) Company, Huainan Mining Group Co., Ltd., Anhui Wanbei Coal-electricity Group Co., Ltd., Maanshan Iron and Steel Co., Ltd., Anhui JAC Group Co., Ltd., Anhui Chery Automobile Co., Ltd. etc.stick to develop circular economy, and acquire prominent achievement.
  In 2010, Anhui Province has eight industrial parks which listed in the circular economy demonstration parks.
  see figure 1:
  
  
  3.3Developing Low Carbon Economy and Clean Production Acquired Fruitful Achievements
  In October 2007, Anhui Economic Commission and Anhui Environmental Protection Bureau issued"Interim procedures of Anhui clean production auditing" and "Interim procedures of Anhui clean production audit inspection." According to statistics, in 2007, Anhui province has 91 clean production enterprises which increased to 116 in 2008. According to the introduction of relevant government departments, in 2009, Anhui Province has declared 427 national energy conservation programs with total investment of 33.15 billion Yuan. After construction of the project, it could save 5.7022 million tons of standard coal per year. Provincial funds gives priority to support 171 projects of industrial energy-saving and comprehensive utilization of resources with a total investment of 4.623 billion yuan, it is predicted that it could save energy of1.316 million tons of standard coal per year in total
  Take Anhui Chlor-Alkali Chemical Group Co., Ltd. as a example.since 2009, the enterprise has applied circular economy to achieve clean production and acquire significant economic and environmental benefits. Enterprise put forward 33 various cleaner production programs of which 23 low-cost programs and 10 high-cost programs. It saved cost of 990,000 yuan / year and 19.67 million yuan / year respectively. Meanwhile, transform the energy-saving boiler and apply oxygen combustion technology to improve combustion performance. On the condition of coal consumption unchanged per year, the boiler steam production increased from the 31t / h to 35t / h, Anhui Amway Technology Group Co., Ltd. invested 2.5 million yuan to improve the company’s recycling ability by increasing a set of concentration tower, two converters. After investment, the solution treatment processing ability increased from 8 tons per hour to 12 tons per hour. original coal consumption was 32.92 tons / day, now is 36 tons / day, processing one ton solution saved 45.21 kg coal, so processing 8,000 tons per month would save 362 tons of coal, price of coal is 530 yuan per ton means could save 191,860 yuan per month.
  3.4Circular Economy Agriculture Has Gained Good Benefits
  Circular Economy Agriculture requires whole consideration of rural land, water, seed, fertilizer, medicine, electricity, oil, wood, grain and other production elements. It emphasis on overall planning, systems savings, through constantly increasing agricultural aggregate production capability andresource productivityto achieve significant economic, social and environmental benefits. Developing circular economy agriculture can reduce the cost of agricultural production and the burden of farmers, it also can increase the income of farmers, protect agricultural ecological environment and prevent Agricultural Non-point Source Pollution. Such as adopting some advanced technologies to achieve high yield in agriculture and save land resources. For example, the yield per mu of ordinary rice is 500 kg, while the super rice could reach 800 to 1,000 kg, one mu of land can generate two mu benefits. Another example, farmers plant an acre of wheat need 30 kg of wheat seeds average, but by scientific method only need 20 kg seeds. Let’s assume seeds are 1yuan /kg, which means savings can achieve more than 10 yuan per mu. Anhui Longquan Town spreads Rice Dry sparse and throwing techniques, saving early season rice seeds 6 kg/mu and hybrid rice seeds 1.5 kg /mu respectively, saving seeds cost of27 yuan/mu.
  Agricultural non-point source pollution mainly because of Livestock manure, pesticides and fertilizers, fibrous solids, etcthese pollution could cause ecological environment deterioration and affect food safety. The establishment of the agricultural economy ecological chain can improve the situation effectively.
  See the figure 1 below:
  
  
  Figure 1: circulation flow of ecology circular economy⑴
  As the figure shown, crop straw, hull, rattan, wood crumbs could sent to the edible fungiplantation to cultivate edible fungi. fungi residues could be used as livestock, fish and shrimp feed, it also a kind of soil improvement organic fertilizer and fermentation material of Biogas. Send the livestock manure and fungi residues directly into the biogas digester to produce biogas energy for family life. As biogas residue is organic fertilizer, it can be used for agriculture, forestry, horticulture, cultivation and aquaculture. Biogas slurry is a kind of liquid fertilizer which is pollution-free green fertilizer. It could reduce the use of pesticides and chemical fertilizers. If farmers choose biogas slurry to fertilize the crops, then agricultural non-point source pollution could be reduced. This kind of agricultural economy ecological chain is widely used in Anhui province, for example, Hefei Dafangying Reservoir has taken the advantage of agricultural economy ecological chain. By means of establishing ecological cycle of fish to improve water quality and ensure water safety; Dangshan County developed the edible fungiecological chain by using fruit tree branches . through the "fruit � fungi - fertilizer - Fruit" to achieve resource conservation and Output Value increasing.
  3.5New Energy Industry Begins to Flourish Under the Policy Supportive
  In recent years, new energy technology make progress quickly in the whole world, its cost decreased, energy conversion efficiency was significantly enhanced and already entered into large-scale development stage, moreover, it is gradually upgraded from the additional energy to the alternative main force energy. For example, the largest single machine capacity of wind power has improved from 30 kW of 1980s to the current 5,000 KW. Price of wind electricity decreased from 15.6 euro cents / kWh down to 4 euro cents / kWh. Average annual growth of photovoltaic solar energy is 38% and average annual growth of wind power is 28% . In 2008, there are 10 sets of nuclear reactors under construction (not including China). Thus, the new energy industry is increasingly becoming an important new industry.
  Anhui already has 780 energy-efficient and environment-friendliness new energy companies. The annual output is more than 48 billion yuan. New Energy Industry has applied in five major fields, including biomass energy, solar energy and PV industry, research and development of new energy vehicles, nuclear energy area and wind electricity project. For example in the use of biomass energy, as Anhui is a major agricultural province, has plenty of crop straw resources. Crop straws mainly are rice, wheat, corn and cole straws, etc. The volume of straw resources is approx 4,000 million tons. Anhui local government took circular economy for guidance, made policies to promote biomass energy usage. comprehensive utilization of strawhas reached 28 million tons per year, accounting for half of the total straw resources of Anhui province. Photovoltaic industry, the province has formed a relatively complete industrial chain. New energy vehicles, Chery, JAC are taking the forefront in the nation. Nuclear power projects, a nuclear project in Wuhu, Anhui, has been included into the "12 Five Years " national nuclear plan.
  
  4.The Advantages and Problems of Developing Circular Economy in Anhui
  4.1The Abundant Scientific and Educational Resources Provided a Favorable Technical Support for the Development of Circular Economy, but It Still Need to Foster Industrial Technology Further
  Advanced science and technology is the core competitiveness and the decisive factor in developing circular economy. Anhui province has abundant scientific and educational resources. It has USTC, Hefei University of Technology, CAS Hefei Institutes of Physical Research Institute, Hefei General Machinery Research Institute, Hefei Cement Design Institute, Hefei Design Research Institute of Coal Industry and a number of other universities and research institutes which engaged in green economy R&D and personnel training in the field of circular economy. Meanwhile, Anhui also has a number of national innovation platform, such as National Engineering Research Center and National Automobile energy saving Engineering Laboratory. Many fast-growing enterprises in Anhui took the route of ceeusro to quickly break the technical bottleneck. Tongling City has combined 19 well-known universities and research institutes and established Tonglin circular economy ceeusro cooperative union which is the first one in linking science and technology cooperation Closely with Industry. Since 2008, 12 companies have signed 18 ceeusro projects with 15 universities Project 18, the total contract amount is 17.4 million yuan. However, the overall circular economy industry in Anhui is small and has few large enterprises; the product level is low as well. Anhui still is lack of alliances to cooperate science and industry. As the circular economy is an emerging industry, it needs the support of many new technologies, new products and new process. The government should strengthening policy support in industry alliances, key laboratories and engineering technology research center.
  4.2The Establishment of Policy and Legal Support System Provided a Strong Protection of Circular Economy, but It Still Need to be Improved
  China made a series of policies and laws to promote the environmental protection and comprehensive utilization and recycling of resources,。The laws which related to circular economy are: "Circular Economy Promotion Law", "Environmental Protection Law", "Clean Production Promotion Law", "Air Pollution Prevention Law," "Water Law", "Land Management Law", " Environmental Impact Assessment Law, " etc.Some of the provisions of these laws are fragmented, standards are not unified, maneuverability is poor.
  Take Anhui Province as an example, the government of Anhui province made many efforts on policy and law in order to promote the development of circular economy. It has drew up” Anhui Ecology Establishment Planning Framework” and passed the resolution about the approval on Anhui ecology establishment planning framework. In September 22, 2005,government released ”The Opinions on Accelerating the Development of Circular Economy of People"s Government of Anhui Province ", in this opinion, government clear the main objectives and tasks of developing circular economy.
  
  5.Countermeasures and Suggestions for the Development of the Circular Economy
  5.1Increasing The Capital Support For Circular Economy Enterprises
  Previous stage of research and development in field of circular economy has features of large investment and high risk. To fulfill scale production requires huge inputs and the cost for initial stage of product application is high, so funding is a big bottleneck which constraint the enterprises development. Therefore, the development of circular economy should be treated as the key areas of government investment by directly investing or supporting through financial subsidy and loan discount on some major projects .
  5.2Improving the Circular Policy System and Legal System
  Foreign governments all without exception formulate preferential policies in tax deduction and exemption, loans and financial subsidies to encourage the development of circular economy. Government should formulate and implement practical incentives, encourage recycling of resources, restrain behaviors of wasting resources and polluting environment. Government and legislative departments should make use of various economic means, including taxes, fees, financial credit encouragement system, environmental labeling system, commission system etc. to regulate circular economy.
  5.3Promoting Researching Cooperation and Improving the Technical Support System
  The government must increase the scientific and technological input, accelerate the construction of technical supporting system for circular economy development. It also should support circular economy enterprises to establish technology alliances with universities, research institutes for key technology researching and help enterprises to enhance independent innovation capability. It is necessary to strengthen international cooperation and build an advanced technology platform for the enterprises.
  5.4Giving Full Play to the Radiation Effects of Circular Economy Pilots and Typical Enterprises
  The government should strengthen tracing research , solve the relevant problems in time and sum up the experience of development to the enterprises which are entered into the circular economy pilots. put forward recycling economy development model of key industries, key areas, industrial parks and urban through pilots. Attention should be paid to the major area of technology and projects. Providing references and demonstrations of circular economy development promotion for government by establishing comprehensive evaluation index system of circular economy and improving the renewable resource recycling network..
  
  6.References
  [1] Ji Kunsen. Promoting Circular Economy and Improving Employment. Anhui people publication .2009.08 (in Chinese).

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