As the circular economy(CE)has made a great progress in China,the concept is misapplied,which is con- trary to nature.This paper demonstrates the dematerialization nature of CE in terms of decoupling,and states that the decoupling between economy and environment is the fundamental goal of CE.It is also proposed to further conceive the decoupling index system,and to apply it as the measurement tool to the assessment of the CE practice in China.