Since 2015, the EU has actively promoted a circular economy action plan with the goal of encouraging the recycling, reuse, repair and recovery of waste products, to optimize product life cycle. The circular economy enhances environmental protection and economic efficiency, and aligns with EU policies relating to Green Deal, carbon neutrality, and sustainable development. This paper will conduct a deep study of the EU circular economy including its background, agenda, policy debates, instruments, action plan, features and impacts, as well as comparing these with corresponding system in Taiwan. It also offers some proposals for reforming laws and practices to enhance the circular economy and public welfare in Taiwan.