The challenges of environmental protection are especially prevalent in South and Southeast Asian nations, which adversely affects their sustainable developmental goals. During the last two decades, increased industrialization and urbanization have caused massive air pollution, particularly in the most industrialized and densely populated countries. Due to China’s fast economic expansion and development, the demand for natural resources has increased, resulting in climate change, biodiversity loss, soil degradation, and environmental risks. China’s ecological footprint has been the subject of little investigation on the premises of a circular economy. This study used a literature review methodology on the critical key factors that hinder or facilitate the transition of a linear economy towards a circular economy. Further, based on the literature review, this study used industrial ecology, energy efficiency, and waste recycling technology factors to analyze the role of the circular e