“The 2014 Blue Book of Economics and the Seminar on Analysis and Forecast of China's Economic Situation” was held in Beijing a few days ago. The Blue Book believes that structural imbalances have become a prominent obstacle to the sustainable development of the industrial economy, mainly reflected in the overcapacity that is common in many industries. Coexist with insufficient capacity.

The Blue Book is the latest research on the economic situation in China from 2013 to 2014, organized by the Economics Department of the Chinese Academy of Social Sciences. The Blue Book pointed out that after years of development, China's industry has established an industrial system with strong competitiveness and complete categories, and in 2010 surpassed the United States to become the world's largest manufacturing country. However, while China's industrial scale has grown rapidly, it has also accumulated many structural contradictions, which have brought severe challenges to the development of the industrial economy.

In 2014, China's economy will still face difficulties and challenges in the following aspects: First, overcapacity in some industries. At the end of 2012, China's steel, cement, electrolytic aluminum, flat glass, and ship capacity utilization rates were only 72%, 73.7%, 71.9%, 73.1%, and 75%, respectively, significantly lower than the international average. Not only traditional industries, but also strategic emerging industries such as photovoltaics and wind power have serious overcapacity problems. Due to factors such as blocked exports, the operating rate of China's polysilicon producers is less than half.

At the same time, although there is overcapacity in China's industry, many industries rely heavily on high-end links. For example, 90% of chips rely on imports, and imports exceed oil every year. A similar situation exists in other industries. Insufficient core technologies in China, such as engine, hydraulics, transmission and control technology, rely heavily on imports; 70% to 80% of high-end medical devices rely on expensive imported or foreign brands, resulting in high inspection costs and increased patient burden.

In addition, the imbalance of demand structure has become a prominent obstacle to the sustainable development of the industrial economy. Li Xuesong, deputy director of the Institute of Quantitative and Technical Economics of the Chinese Academy of Social Sciences, commented that overcapacity caused a lot of waste of resources, increased environmental pressure, and also caused vicious competition among enterprises, which reduced the motivation of technological innovation of enterprises. The ability has affected the overall efficiency of industrial organizations. It can be said that overcapacity has become a source of prominent contradictions and many problems in economic operations.