This dissertation focuses on the roles of government intervention in developing circular economy. We start with a pre-study of the theories and literature related to circular economy in the developed countries around world. Several case studies are adopted to illustrate the different measures in developing circular economy. Case studies concerning the environmental taxation, the tradable permits and the green certificate system put an emphasis on the economic role of government intervention. A case study of a circular economy in the city of Kristianstad including C4 Energy Company and waste management covers all the measures in harmonization. At last a framework of government interventions and eight proposals based on Swedish experience are tested and supported. Then a comparison between Sweden and China is carried on under a Chinese context through a case study of Chinese Eco-park. The framework is categorized into three aspects: state regulation, economic instruments and social balance mechanism. After the comparison, some modifications are done. We develop a framework and eight proposals in developing a circular economy in China.