Study On The Overcapacity In Chinese Flat Glass Industry

China is the world’s largest economy, its process of industrialization and urbanization is the dynamo for economic growth for some time to come. To benefit from the stimulation of investment, when the2008global financial crisis spread the world, our country coped with it successfully. However, from the trajectory of Chinese economy, because of under the investment-driven economic growth mode for many years, the rapid growth of investment may go with the crisis of overcapacity. It is much in evidence that in some middle-upper stream industrial manufacturing industries, particular in traditional industries such as steel, cement, flat glass and emerging industries such as polycrystalline silicon, the problem of overcapacity is significantly. Meanwhile, in some middle-lower stream mechanical manufacturing industries, represented by wind power equipment and shipbuilding, overcapacity has also emerged. Furthermore, some public infrastructure industries such as high-speed railway, highway and airport saw the overcapacity problems on the rise as well.As a pillar industry of China, flat glass industry is indispensable important material industry for our country’s national economic development and people’s living standards improvement. The overcapacity problem of this industry has always been the focus of the prevention and control for the policy department, and has received much attention from the whole society. Consequently, it is of vital reference value and practical significance to research on the overcapacity problem of Chinese flat glass industry.In view of this, this paper used flat glass industry overcapacity problem as the breakthrough point. First and foremost, discuss the domestic and foreign experts’ research on the definition of overcapacity, some related concepts of overcapacity and the formation mechanism of overcapacity. Secondly, analyze the current situation of flat glass industry, and point out the problems of this industry in its development. Thirdly, carry on the analysis of the industry overcapacity problem through the data from total quantity and structure, combined with the national economy, government behavior and the industry’s own background to analyze the overcapacity formation mechanism of flat glass industry deeply. And discuss the positive influences and negative influences caused by the industry overcapacity problems. Moreover, by establishing regression model to analyze and forecast the demand of flat glass for its downstream market in the future, and it could be estimated that the development of flat glass industry is ever bright. Last but not least, based on the analysis of the overcapacity formation mechanism of the industry and the forecast of the demand of flat glass for its downstream market, propose some corresponding countermeasures and suggestions from the government, industry association and enterprises respectively, in order to make the flat glass industry realize the sustainable development in the future, and achieve the purpose of writing.It is found that the overcapacity of Chinese flat glass industry does not mean the whole industry and various products are all excess the capacity, but because of structural contradictions, system contradictions and periodic contradiction, leading to the overcapacity in the low and middle-end products. Therefore, it should not easily qualified as overcapacity without distinguish. With the development of economy, the various flat glass products not only play important role in the traditional field such as building construction and vehicle manufacture, but also become the key components in emerging industries such as the solar energy industry and electronic information industry. Although the flat glass industry has some problem in overcapacity at present, but such situation is also a good challenge and opportunity. The government, industry association and enterprises should make joint efforts, Hold this chance tightly, though all kinds of means such as system reform, policy implement, Annexation and reorganization and industrial upgrading, focus on the industry development from scale expansion to the quality and structure adjustment, so as to make China become not only a large country of flat glass industry, but also to be the powerful one.The contribution of this paper is, from the current situation of flat glass industry, analyze the overcapacity of this industry by its time background and industry background, thus, there could be concreted and deep research on it. Along with the analysis of its downstream market, it may also reinforce the pertinence and feasibility of the corresponding countermeasures and suggestions.