Transitioning Towards Circular Construction in China: Breaking Barriers and Unlocking Sustainable Growth

Abstract

The construction industry is one of the industries with the highest concentration of resource consumption and carbon emissions in China, and it is also an important area for realizing the goal of sustainable development. In recent years, China has introduced several circular building policies; however, problems persist, including decentralized governance, a lack of standards, and insufficient participation by small and medium-sized enterprises (SMEs) in their implementation. This paper employs a qualitative research methodology to systematically assess the status of policy implementation, conducting a directed content analysis of national policy documents and comparing them with cases in Shanghai, Shenzhen, and Suzhou. The results show that China has made some progress in green standards, financial incentives and pilot explorations. Still, the cross-sectoral coordination mechanism is weak, the life cycle assessment criteria have not been harmonized, and enterprises, especially SMEs, face barriers in financing, certification and technology. Drawing on the European Union's experience in green public procurement, extended producer responsibility and life cycle management, this paper proposes a system optimization path centred on uniform national standards, regional differentiated implementation, inclusive policies for SMEs and an independent assessment mechanism. The study demonstrates that promoting the development of circular buildings is a crucial approach to achieving carbon neutrality, while supporting the implementation of Sustainable Development Goal 9 and enhancing industrial resilience and innovation capabilities.