With the enforcement of "Circular Economy Promotion Law", extended producer responsibility has become the important institution of China's circular economy. However, incentives for the majority of producers are lacking. This paper starts with EPR's theoretical base, clarifying its environmental goals and responsibility modes. Five promotional factors are deduced, which are improvement potential of product's environmental performance, feedback to product redesign, closed-loop recyclability, cost-benefit certainty and service substitutability. The promotional strategy of China's EPR is then discussed.