This article concerns analyzing China's chemical industry from the circular economy perspective, which will elaborate on the reasons for applying circular economy policies in this industry and the countermeasures (solutions) for the chemical industry or firms achieving a circular economy. The reasons include the economic, energy, and environmental aspects. From an economic aspect, the trend of the total revenue of the chemical industry in China from 2005 to 2021 is constantly increasing. Moreover, in 2021, its total revenue was top in the world. Thus, China's chemical industry benefits China's economy and has predominance globally, which is an essential industry. Furthermore, in energy and environmental aspects, the chemical industry in China has the characteristics such as high emissions, and high-pollutions, and being energy-intensive. These features damage the environment and sustainable development. Fortunately, this article will state the solutions for reaching CE in this industry when adopting circular economy policies. The countermeasures contain decarbonization and a circular chemistry framework, which are the reliable solutions presently.