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development, in practice, environmental protection lagged far behind economic
development. In 2005, the State Council made a decision on implementing the Scientific Outlook on Development and strengthening environmental protection. For the
first time, the document said economic and social development should be in good
coordination with resources and the environment. The revised Environmental Protection Law of 2014 adopted this principle and included putting economic and social
development in harmony with environmental protection in Article 4.
In the early twenty-first century, Anji, Zhangjiagang and some other places in
coastal provinces of Zhejiang, Fujian and Jiangsu in east China emerged as good
models for coordinated development of the environment and the economy. They stood
out in preserving lucid waters and lush mountains while pursuing and maintaining
prosperity. When the result of environmental protection was translated into tangible
economic and social benefits, protecting the environment equalled protecting the
productive forces, and lucid waters and lush mountains were indeed recognized as
invaluable assets.
After the CPC pledged to build an ecological civilization at its 17th National
Congress, particularly after the 18th National Congress, China’s understanding of the
laws for balance between the environment and the economy and its strategic arrangements and practices for balanced development underwent systematic changes marked
by the Five-Sphere Integrated Plan, the Four-Pronged Comprehensive Strategy and
the green development concept. When the economy entered a new normal, and shifted
from high-speed growth to high-quality development, the relationship between the
environment and the economy changed holistically and fundamentally. The environment was regarded as precious resources and valuable natural assets. Like land and
technology, it is a factor of production that has a bearing on high-quality development. In the meantime, a sound environment is the result of high-quality development
and a gauge for high-quality development. A sound environment and high quality
development are what should be pursued. The two aspects reinforce each other. This
is the theoretical meaning of the principle that lucid waters and lush mountains are
invaluable assets.
Therefore, this principle put forth by Xi Jinping reveals the relationship between
the environment and the economy as well as the law governing this relationship. A
vivid condensation of environmental economics, it provides guidance for balanced
development of the environment and the economy. The principle is thus an important
part of Xi Jinping Thought on Ecological Civilization.
Xi expounded on the dialectical relationship between the environment and
economic development during his inspection tour to Hainan in 2013. The effectiveness of environmental protection efforts, at its very bottom, depends on the
economic structure and the approach to economic development. We should not
deplete natural resources and use up all that the environment can offer to pursue
economic development. Protecting the environment does not mean sacrificing
economic growth.
Xi said in 2014 that it was the intrinsic requirement of sustainable development
to properly handle the relationship between environmental protection and development or the relationship between lucid waters and lush mountains and material
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