China will support the development of a recycling economy with more governmental spending and preferential policies, to ensure a sustainable development for the country, a Chinese Ministry of Finance (MF) official has said.

"China will increase spending on environmental protection, adjust tax policies, promote industrialization of waste treatment, and raise the prices of natural resources to support the recycling economy," said Li Jinghui, deputy director of MF's Economic Building Department, at a weekend forum in Beijing on China's sustainable development.

He disclosed that his ministry was mulling setting up a special fund to support the research and development of renewable energies, badly needed by the country to boost its rapid economic growth.

Meanwhile, the government will gradually increase its spending on clean production, said Li, noting that the MF had established a special fund in this regard last year.

Li said that China would also reform its tax system, "taking into account the environmental factors." For instance, tax rebates for the export of some resources-based products would be revoked while the import tariff for such products would be exempted.

China has witnessed high economic growth over the past two decades. However, such growth was accompanied by a high consumption of natural resources and serious pollution.

Li attributed the phenomena mainly to the low cost of natural resources in the country, saying that his ministry was considering to increase the prices of resources-based products to reverse the trend.

The recycling economy, which highlights "reduce, re-use and recycle," aims at promoting a more efficient use of energy and natural resources. The Chinese government has put high on its agenda the development of a recycling economy, hoping to achieve a coordinated development between economy, society and the environment.

Source: Xinhua