Industry Research Overlaps With Industry Overcapacity Problem Between Regions

Since China’s reform and opening up, China has basically established a socialist market economic system, bid farewell to the long-standing "shortage" economy, China was turning from a planned economy to a market economy, China’s economy has gradually entered a period of rapid growth, China’s Fixed asset investment and foreign trade growth rate continues to rise. However, in the development of these prosperity background, there are some potential crisis. This also resulted in the state of the market in oversupply of many commodities, overcapacity has become a major problem in China’s development, severely affecting the sustainable development of our economy, to our country’s economic development has brought a lot of negative effects.In this paper, the knowledge and methods of economic theory, for different industries among regions to study its overcapacity impact from inter-regional industrial distribution, studies the causes and capacity formation mechanism of excess overcapacity arise through Our empirical analysis of the status quo and explore the impact of overcapacity in China’s economic development, and make relevant policy recommendations. To provide for the country’s economic development as well as inter-industry overcapacity problem of governance reference, so that the healthy development of China’s economy, overcapacity problem can be alleviated.Make our country due to overcapacity brought waste of resources, ecological destruction issues have been improved.Overcapacity in the industry refers to a longer period of time is much greater than the production capacity of the market demand, which appeared a serious imbalance in supply and demand phenomenon. Overcapacity in the industry is divided into cyclical overcapacity, structural overcapacity, institutional overcapacity, production overcapacity and between regional industries needs a lot of atrophy caused by overlapping industry overcapacity. Production of the country as a whole on lower capacity utilization in the year, the overall industry overcapacity situation is getting worse. Caused by overcapacity reason I have the diversity and complexity. For me overcapacity governance made the following recommendations: First, there must improve the optimization of market entry and exit mechanisms, second, to improve the market system, and the third, to improve the performance evaluation system, and the fourth, to speed up industrial restructuring industrial overcapacity pace, the fifth, to improve the technical level to enhance innovation capability, sixth, reduce the production capacity in order to ease my overcapacity problem.