Green development is a new model of development for China's economy to create a new normal by transforming and upgrading the TCM industry. A green TCM industry must solve the problems of three wastes because wastes generated from processing Chinese medical material (CMM) resources seriously pollutes the ecological environment and puts pressure on the environment. From the environmental value model and green economy theory, this study explains the social value of the environment, clarifies the social costs of TCM resources that create negative externalities from waste generated in the TCM industry. This study on the internal mechanism of external effects and discussion of the green economy model and use of green technology to recycle TCM waste proposes an economic network model to promote the use of technology to reuse TCM waste in a green network of industries.
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