BEIJING - China Association of Circular Economy (CACE) was set up Saturday to promote the growth of circular economy.

The association, with members including government officials, academicians and entrepreneurs, will serve as a platform for amassing strengths from different participants in the industry, promoting the idea of recycling and daily practice, and contributing to the nation's efforts to develop the green economy, said a CACE press release.

CACE data showed that the gross output value of the circular economy had grown by 15 percent on average from 2006 to 2010 in China, outpacing the nation's general economic growth by 4 percentage points.

The CACE expects that the industry's output will further expand to 1.8 trillion yuan ($293.43 billion) by 2015, from one trillion yuan in 2010.

"The circular economy has great potentials and the development of it will boost the recycling of resources and sustainable economic growth," said Xie Zhenhua, vice chairman of the National Development and Reform Commission, the government's major economic policy making body.