On January 19, 2015, Study Times published an article setting forth measures to combat industrial overcapacity.
In the second half of 2013, capacity utilization in China was at 78 percent, the lowest since the fourth quarter of 2009. The third quarter of 2014 saw the capacity utilization at 78.7 percent, a reduction of 0.9 percent when compared to same period in 2013. The inventory of finished industrial goods grew by 12.6 percent in the first half of 2014, an increase of 5.4 percentage points. In the second half of 2014, capacity grew faster than demand, adding pressure to the inventory.
The article proposed a three-prong approach: Government intervention, industrial policies to increase capability instead of providing subsidies, and optimization of the system environment for the market economy.
Source: Study Times, January 19, 2015