Circular Economy and Sustainable Development in China's Textile Industry: Challenges and Innovation Pathways

ABSTRACT

The circular economy (CE) is increasingly promoted as a strategy for addressing environmental degradation and resource inefficiencies. Despite growing policy support, CE implementation remains fragmented in many resource‐intensive industries, particularly in emerging economies. This study investigates barriers to CE adoption in China's textile industry and examines their structural interrelationships. Drawing on the Natural Resource‐Based View (NRBV), Institutional Theory, and Stakeholder Theory, the study employs an integrated framework combining the Fuzzy Delphi Method (FDM), Interpretive Structural Modeling (ISM), Matrice d'Impacts Croisés Multiplication Appliquée à un Classement (MICMAC) and decision making trial and evaluation laboratory (DEMATEL). Data were collected from a purposively selected panel of 12 industry and academic experts. FDM validated the critical barriers, ISM established their hierarchy, MICMAC classified their driving and dependence power, and DEMATEL verified causal intensity and robustness. The findings identify inadequate governmental support and insufficient regulatory frameworks as the primary driving barriers. Technological constraints and high investment costs emerged as major linkage barriers, while organizational resistance, weak market demand, and limited stakeholder awareness appeared as dependent outcomes. The study develops a phased implementation roadmap that prioritizes institutional reform, technological investment, organizational capability development, and market transformation to accelerate CE transition in China's textile industry.