Overcapacity in China: An Impediment to the Party’s Reform Agenda

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The European Chamber of Commerce in China has released a new major report that addresses the problems arising from increased overcapacity in China’s industrial economy. Overcapacity in China: An Impediment to the Party’s Reform Agenda provides a detailed examination of the causes and consequences of overcapacity in eight key industries and analyses the developments that have taken place since the European Chamber published its original report on this topic in 2009.

The new report explains how central government efforts to address excessive production capacity have been ineffectual due to regional protectionism, weak regulatory enforcement, low resource pricing, misdirected investment, inadequate protection of intellectual property rights and an emphasis on market share.

The report provides 30 recommendations that should be taken to address this deep-rooted problem. The European Chamber hopes that they will also contribute to a strengthening of the government’s resolve to implement the core tenet of the Third Plenum’s Decision – establishing the market as the decisive force in China’s economy.

Please click here to view English press release or click here to view the Chinese version.

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Publication title
Overcapacity in China: An Impediment to the Party’s Reform Agenda - 中国的产能过剩:如何阻碍党的改革进程
Overcapacity Report Launch Event PPT - 产能过剩报告发布会PPT