Article 35 The people's governments at or above county level and their departments of forestry shall develop ecological forestry actively, and encourage and support forestry producers and relevant enterprises to employ timber-saving and alternative technologies to make a comprehensive utilization of forestry wastes, inferior woods, short ends, fuel woods, sand shrubbery, etc. and improve the comprehensive utilization rate of timbers.

Article 36 The state supports producers and operators to establish an industrial wastes exchange information system to promote enterprises to exchange information on industrial wastes.

Where any enterprise is unable to make a comprehensive use of wastes generated in production, it shall provide such wastes to qualified producers or operators for comprehensive utilization.

Article 37 The state encourages and promotes the establishment of waste recycling system.

Local people's governments shall make a reasonable layout of waste recycling stands and trading markets according to their urban-rural planning, and support waste recycling enterprises and other organizations to conduct waste collection, warehousing, transport and information exchange.

Waste recycling and trading markets shall comply with the provisions of the state on environmental protection, safety, fire-fighting, etc.

Article 38 The dismantlement and reusing of special products, such as used electric and electronic products, discarded motor vehicles and ships, waste tires and waste lead-acid batteries, shall comply with the provisions of relevant laws and regulations.

Article 39 Recycled electric and electronic products that are used for sale after repair shall meet the recycled products standard and be labeled "recycled product" at a marked place.

Recycled electric and electronic products that need to be dismantled and reused shall be sold to qualified dismantling enterprises.

Article 40 The state supports enterprises to reproduce components and parts of motor vehicles, mechanical products and machine tools and renovate tires.

The quality of the reproduced and renovated products for sale shall meet standards provided by the state and be labeled "reproduced product" or "renovated product" at a marked place.

Article 41 The people's governments at or above county level shall make a comprehensive plan on building facilities for the classified collection and recycling use of urban and rural household garbage, establish and improve the system for classified collection and recycling use, and raise the recycling rate of household garbage.

The people's governments at or above county level shall support enterprises to build facilities for sludge resource recycling and disposal, improve the comprehensive utilization level of sludge and avoid re-pollution.

Chapter V Incentive Measures

Article 42 The State Council and the people's governments of provinces, autonomous regions and municipalities directly under the Central Government shall set up relevant special funds for developing circular economy to support scientific and technological research and development regarding circular economy, demonstration and promotion of technologies and products regarding circular economy, implementation of major circular economic projects and information services for developing circular economy. Specific measures shall be formulated by the administration of finance under the State Council with the general administration for developing circular economy under the State Council and other relevant departments.

Article 43 The State Council and the people's governments of provinces, autonomous regions and municipalities directly under the Central Government as well as their relevant departments shall incorporate the independent innovation research, application demonstration and industrialization of key science and technology projects on circular economy in national or provincial science and technology development plans and hi-tech industrial development plans, and appropriate certain fiscal capital for support.

Any entity that uses fiscal capital to introduce main technologies and equipment relevant to circular economy shall make a plan for digestion, absorption and innovation, submit the plan to competent departments for approval and implement it under the supervision of such departments. Competent departments shall establish a coordination system according to actual needs to make a comprehensive coordination of the introduction, digestion, absorption and innovation of such main technologies and equipment and give a financial support.

Article 44 The state shall give tax preferences for industrial activities conductive to promoting circular economy, and encourage the import of technologies, equipment and products that may save energy, water and materials through measures including taxation, and restrict export of products with high energy-consumption and heavy pollution during production. Specific measures shall be formulated by the administrations of finance and taxation under the State Council.

Where any enterprise uses or produces any technology, process, equipment or product listed in the catalogue of encouraged clean production and resource comprehensive utilization by the state, it may enjoy tax preferences in accordance with relevant provisions of the state.

Article 45 When formulating and implementing investment plans, general administrations for developing circular economy under the people's governments at or above county level shall incorporate the projects that may save energy, water, land and materials and use resources comprehensively into the major investment area.

Where any project meets national industrial policies that may save energy, water, land and materials and use resources comprehensively, financial institutions shall give them credit support such as preferential loans and provide relevant financial services actively.

Where any enterprise produces, imports, sells or uses any technology, process, equipment, material or product listed in the catalogue of elimination, financial institutions shall not grant any credit support in any form.

Article 46 The state shall implement a price policy conductive to resource conservation and reasonable utilization and guide entities and individuals to save and reasonably use water, power, gas and other resource products.

Administrations of pricing under the State Council and the people's governments of provinces, autonomous regions and municipalities directly under the Central Government shall carry out restrictive price policies to restrictive projects in high resource-consumption industries in accordance with national industrial policies.

Where any grid-connected power generation project uses remaining heat and pressure, coalbed gas and low-calorie fuels including gangue, slime, garbage, etc., pricing departments shall fix the on-grid electricity price for it in accordance with principles conductive to resource comprehensive utilization.