“3R” principle circular economy emphasizes the technical operation level, while the theoretical viewpoint on value-increasing of circular economy makes deep analysis based on environmental economics. The viewpoint takes for that the evaluation of any circular economic model should consider both the economic value and externalities. If the material units unattached to products in the economic system are circulated with value-increasing as more as possible, more value can be created with lower consumption of resources. The essential principle of circular economy is that the material units within an economic system should go through the multiple production to be circulated with value-increasing, the main purpose of circular economy is that the material units shouldn’t attach to waste going out of the system as much as possible in order to reduce pollution emissions, the economic mechanism of circular economy is that the economic value chain should be used to pull the material units of the system to achieve smooth circulation.