Abstract: The report of the 19th National Congress of the Communist Party of China first mentioned the modern economic system, at the same time, it clearly pointed "to establish and strengthen the economic system with green and low-carbon circular development." In this context, this paper will be explaining the essence of the economic system with green and low-carbon circular development, and analyzing the practical significance and current situation of it. On this basis, the paper puts forward relevant suggestions: improve the top-level design and solidate the supportive base, starting from the production, distribution, exchange and consumption of the economic system; strengthen the operation phase (in the production phase, reducing resource consumption from the origin and the whole process, reducing pollutant emissions, recycling and reuse); in the distribution phase, the market should play a fundamental role in the allocation of resources and let the market decide the exchange and distribution; in the exchange phase, more efforts should be made on planning and constructing the circulation pattern of "channel+hub+network", and promoting the green, low-carbon, circular and efficient resource exchange; in the consumption phase, the concept of green and low-carbon consumption should be publicized through various channels and forms to promote the green lifestyle and consumption mode, so as to promote the construction of modern economic system with green and low-carbon circular development.