China is drafting the law on recycling-based economy, and the country's top legislature is scheduled to deliberate the draft law in 2007, said a senior official of the legislature.

"The law on circular economy will play a key role in China's overall economic and social development," said Ye Rutang, vice-chairman of the Environmental and Resources Protection Committee under the National People's Congress.

He told a weekend seminar on circular economy that his committee has undertaken the drafting of the law and is cooperating with relative government departments and institutions.

The law should provide a legal framework to encourage and guarantee the development of circular economy, he said, noting that it should also cover all social and economic activities related to the economy, ranging from production to consumption.

The Chinese government has been pushing the development of circular economy, in a bid to sustain its rapid economic growth under the increasingly heavy pressure of environmental degradation and shortages of natural resources.

"We must vigorously promote the development of circular economy to build an energy-saving and environment-friendly society," said Chinese President Hu Jintao at a national conference on population, resources and environment held in March.

Chinese Premier Wen Jiabao also reiterated the importance of circular economy at a meeting in June, calling for speeding up the drafting of law on circular economy and promoting resources-saving and environment-friendly modes of economic development.

Source: Xinhua