Solution to excess capacity in view of stakeholders

摘要

Excess capacity is one major problem in the process of China's economic development. The reason is that capacity goes far beyond the market demand. It's different from excess capacity in the West, which is caused by insufficient demand of consumers. In addition, various stakeholders who have different needs are involved in the processes of formation and governance of excess capacity. Excess capacity is formed and further upgraded by game among central governments, regional governments, manufacturing companies and other institutions. Therefore, solution to resolve excess capacity issues are raised by analyzing market failure and game among central governments, regional governments, manufacturing companies.