China's consumption of the world's resources is reaching crisis levels. Unchecked, such levels of consumption and waste would strain the nation and the planet. To prevent the worst scenario, the country is taking action. For the past decade, China has led the world in promoting the recirculation of waste materials through setting targets and adopting policies, financial measures and legislation. The ultimate goal is a 'circular economy' — closing industrial loops to turn outputs from one manufacturer into inputs for another. This approach reduces the consumption of virgin materials and the generation of waste. Progress has been modest and the obstacles to transforming the economy are formidable. Western countries have struggled for decades to get companies to collaborate along a supply chain. China has the advantage that more than half of its manufacturing activities are conducted in industrial parks and export processing zones. Targeting these parks is beginning to slash the intensity of China's resource use.