Can overcapacity be avoided by foresight?

The task of reducing overcapacity, one of the five major goals of supply-side structural reform, will continue to face challenges next year. Since reducing overcapacity relates to structural adjustment, which is a long-term process, overcapacity can hardly be reduced in one stroke.

Making the matter more complex is the fact that industries involved in reducing overcapacity are pillar industries that played a key role in China's rapid economic growth.

So overcapacity reduction and solving the problems resulting from overcapacity demand special attention. Overcapacity can be reduced in a short time by administrative measures, but the reasons behind overcapacity cannot be eliminated overnight. They could again create overcapacity in some industries, leading to similar economic problems in the future.