MNI BRIEF: China Should Address Overcapacity
China should pay attention to overcapacity when developing "new quality productive forces" by moderating its industrial policies to avoid over-guiding and over-stimulating, and maintain a good boundary between government and the market, said Huang Hanquan, dean of the Academy of Macroeconomic Research on Thursday.
"Overcapacity is a problem for all the market economies," Huang told reporters at a meeting held by the All-China Journalists Association. He added 80% capacity utilisation would be an appropriate level.
Local governments must adapt to domestic conditions and base the development of "new quality productive forces" on their resources and technological conditions, he said. It is also necessary to strengthen information disclosure and coordination between regions to avoid duplicate construction, he added.