National Development and Reform Commission: Too many export commodities means overcapacity is untenable

On April 17, Jin Xiandong, director of the Research Office of the National Development and Reform Commission, said at a press conference on the macroeconomic situation and policies today that capacity utilization rate is an indicator reflecting the relationship between production and demand in the short term, and is affected by factors such as demand conditions and profitability. Judging from China's historical data in recent years, the quarterly fluctuations in capacity utilization rate are relatively large. Capacity utilization rate is relatively low in the first quarter and relatively high in the fourth quarter, which is related to factors such as the Spring Festival holiday. Our preliminary analysis shows that capacity utilization rate is expected to gradually rise in the next few quarters. Regarding capacity issues, we must proceed from economic laws and look at them objectively and dialectically. Under market economic conditions, the balance of supply and demand is relative and imbalance is common. Moderate production exceeding demand is conducive to market competition and survival of the fittest. This phenomenon is widespread. Some parties link the issue of production capacity to international trade, and believe that too much export of goods means excess production capacity, which is untenable.