Political Economic Analysis On Overcapacity

In recent years,under the influence of various factors,the traditional industries such as steel and coal,as well as growing area such as new energy vehicles,photovoltaics and other emerging fields have experienced rapid expansion of production capacity,and the subsequent sharp decline in market demand has led to overcapacity in many industries.In 2015-2016,overcapacity caused some of the strong cycle industries reached bottom.The overcapacity has the characteristics of wide industry,long duration,deep influence and difficulty in solving the problem,and has become an important factor affecting the high-quality economy development.Since 2016,China's supply-side structural reforms have achieved remarkable results,“decapacity,de-inventory,de-leverage,remove cost,fix shortage” ranked “de-capacity” in the first place,and accumulated problems of the steel,coal,chemical and other industries have improved significantly,while strong policy control improved industry that has caused severe overcapacity problem.This shows that in the case of overcapacity,China has adopted a series of effective measures to form a unique Chinese experience and Chinese wisdom to deal with overcapacity.Correspondingly,China's academic circles have also conducted sufficient and extensive research on the problem of overcapacity.However,the systematic political economic analysis of this problem is lacking.It is necessary to understand the formation mechanism and countermeasures of overcapacity from the perspective of political economy,and combine the practice of overcapacity in China to summarize the Chinese experience and Chinese wisdom of dealing with overcapacity.According to the narrative method of Marx's scientific abstraction method,starting with the logic from the abstraction to concrete of the overproduction of overcapacity,the reason behind the overcapacity is essentially the two socially necessary labor time mismatches.Furthermore,the imbalance between industrial organization and industrial structure caused by the mismatch of socially necessary labor time has two meanings.The first meaning of the mismatch of socially necessary labor time and the imbalance of industrial organization lead to overcapacity,the second meaning is the mismatch of necessary labor time and the imbalance of industrial structure lead to overcapacity.Then analyze the formation mechanism of overcapacity in China from the perspective of industrial organization and industrial structure imbalance,and carry out empirical analysis in combination with Liaoning former industrial base.To clarify the political implications of political economy analysis of overcapacity,that is,to prevent the mismatch between the two socially necessary labor time.The inherent function of the socialist country is effectively allocating resources,manage and avoid overcapacity.The purpose of country intervention is to make the market play a decisive role in resource allocation while improve the performance of government,and effective industrial organization policies and effective industrial structure policies are indispensable.Finally,combing the political practice of dealing with overcapacity,on this basis,raise policy recommendations for overcapacity.