In order to acquire knowledge of circular economy performance in the China and EU, this master’s thesis seeks to study circular economy at macro level using qualitative as well as quantitative approach. The master thesis starts with the baselines of the CE model, defining its main principles, including importance of eco-innovation, waste management and consumer behavior. The relevant information is gathered and organized so as to compare these two countries in their transition towards the CE. In order to assess the outcomes and evaluate the performance, the socio-economic, environmental and economic indicators, were used. Besides that, also possible advantages and limitations related to the application of the CE model principles were analyzed. From the benefits of the new economic model can be highlited resource productivity improvement, lower environmental impact due to fostering sustainable economic growth, higher self-sufficiency for raw materials and as a result improved economic competitiveness and job creation. On the road to sustainable development, countries have to overcome specific constraints that arise from a poor promotion of the circular economy and eco-innovations, lack of investments, especially in R&D, insufficient infrastructure to increase the use of valuable secondary raw materials and reduce waste disposal, and lack of appropriate information for public on the benefits of the circular economy and sustainable waste management. The comparative analysis of the chosen countries was performed to benchmark performance, compare different strategic frameworks, explore implemented policies and initiate future perspectives for circular economy development.