The factory has experienced
overcapacity due to a decrease in demand for their products.
工厂因为产品需求减少而面临产能过剩的问题。
The power grid is designed with built-in
overcapacity to handle peak loads.
电网设计时内置了过量容量，以应对尖峰负荷。
The shipping industry is suffering from a global
overcapacity problem, leading to lower freight rates.
航运业正面临着全球性的运力过剩问题，导致运费降低。
With the introduction of new technology, many industries now face
overcapacity issues as production efficiency increases.
随着新技术的引入，许多行业现在因生产效率提高而面临产能过剩的问题。
Overcapacity in the automotive sector has led manufacturers to consider merging or downsizing operations.
汽车行业的产能过剩已促使制造商考虑合并或缩减业务规模。
Due to an oversupply of housing, the real estate market currently experiences
overcapacity.
由于住房供应过剩，当前房地产市场存在产能过剩现象。
The coal mining industry is plagued by
overcapacity, which contributes to falling prices and environmental concerns.
煤炭开采行业深受产能过剩之苦，这导致价格下跌以及环境问题加剧。
The airline industry has struggled with
overcapacity during off-peak travel seasons, resulting in discounted fares.
在旅游淡季，航空业因运力过剩而挣扎，导致机票打折促销。
The steel industry's
overcapacity worldwide has put pressure on producers to innovate and reduce costs.
全球钢铁行业的产能过剩给生产商带来了创新和降低成本的压力。
The solar panel manufacturing sector is experiencing
overcapacity, making it challenging for companies to maintain profitability.
太阳能电池板制造行业正面临产能过剩的问题，使得企业维持盈利变得困难。
"In the face of overcapacity resulting from the industry's rapid growth, it is important that product breakthroughs and technologies can take a step ahead of market demand," said Li Fengmei, vice-president of the Shenzhen, Guangdong province-based company, who added that improving product attractiveness to customers is a must-do in the company's development.
这家总部位于广东省深圳市的公司副总裁李凤梅表示：“面对行业快速增长导致的产能过剩，重要的是产品突破和技术能够领先于市场需求。”他补充道，提高产品对客户的吸引力是公司发展的必要任务。
However, despite the profit jump, insiders still warn of a possible margin squeezes due to overcapacity.
然而，尽管利润大幅增长，业内人士仍警告称，产能过剩可能导致利润紧缩。
In response to the risk of overcapacity, Li said that such a scenario may occur periodically and that innovation is the key to addressing such problems and realizing the industry's sustainable development.
针对产能过剩的风险，李表示，这种情况可能会周期性发生，创新是解决这些问题和实现行业可持续发展的关键。
"Supply-side reform has reduced low-end overcapacity, and the country aims to increase medium to high-end supplies through new technologies and innovation.
“供给侧改革减少了低端产能过剩，国家旨在通过新技术和创新增加中高端供应。
He said it is also practical for the government to promote professional integration between central SOEs, especially those with homogenized businesses and overcapacity.
他称，央企特别是业务雷同、产能过剩的央企之间进行专业化整合，也符合政府的要求。
To facilitate the 2020-22 action plan for State-owned enterprises reforms, the government will vigorously promote professional integration between central SOEs, especially those with homogenized businesses and overcapacity, said Li Jin, chief researcher at the China Enterprise Research Institute in Beijing.
为推动2020-22年国企改革行动计划，政府将大力推动央企间的专业化整合，尤其是业务雷同和产能过剩的央企，北京中国企业研究院首席研究员李进表示。
In the meantime, China Baowu is working to scrap the stereotype that the steel sector is plagued by overcapacity and pollution.
与此同时，中国宝武正在努力扭转人们对中国钢铁行业产能过剩和污染严重的刻板印象。
Some of its products could not be delivered to its customers on time as certain online retailers' warehouses faced overcapacity during the first few months.
在前三个月里，由于一些在线零售商的仓库面临超负荷运作，部分产品无法按时交付给客户。
The government's supply-side reforms are designed to reduce overcapacity, and effect structural changes in oversupplied industries, including aluminum and steel, so they could upgrade their product mix.
"The group's structural adjustment on revenue sources and production procedures－and variation of products－helps it tackle overcapacity of phosphate fertilizer (on which the group's income relies heavily) and hedge risks from continuously shrinking market demand," He said.
As the bellwether of China's steel industry, which is challenged by overcapacity, and need for cost reduction, efficiency improvement, energy saving and emission reduction, Baosteel is determined to lead the Chinese steel sector in seeking high-quality and sustainable development by improving its competitive cost, quality and service, said Zou Yuxian, deputy director of the intelligence manufacture office of Baosteel.
Lian Weiliang, deputy head of the National Development and Reform Commission, said at a recent news conference that enterprises need not worry about overcapacity after the epidemic.
At that time, we may face the problem of overcapacity.
Lian Weiliang, deputy head of the National Development and Reform Commission, said during a recent news conference that enterprises should not worry about overcapacity problems after the epidemic.
"At that time, we may face the problem of overcapacity.
Lian Weiliang, deputy head of the National Development and Reform Commission, said during a recent media conference that enterprises should not worry about overcapacity problems after the epidemic.
Following the call of the central government for industrial upgrading and high-quality development, China Baowu has already cut 15.43 million tons of overcapacity between 2017 and 2018, while Magang reduced 2.24 million tons of iron and 2.69 million tons of steel output during the 13th Five-Year Plan (2016-20).
One of the world's largest consumers of paper pulp, the Chinese domestic paper industry was plagued by overcapacity, which led to declines in both output and consumption in 2018, a report by Shenzhen-based Qianzhan Industry Research Institute said.
"There are many challenges that the company faces like weak oil prices, uncertainties from the global oil market and the problem of overcapacity that China's chemical industry has been facing, which are the possible reasons for the slump in its net profit," Lin added.
The merger is a solid move to strengthen the earning ability of the State-owned enterprise sector, many of whom have been affected by overcapacity and limited market channels, such as those in steel, shipping and construction material industries, said Zhou Lisha, a researcher at the research institute of the State-owned Assets Supervision and Administration Commission.
Under the guidance of the supply-side structural reform, China has made notable breakthroughs including cutting industrial overcapacity, destocking and lowering business costs in the past few years.
Delta Air Lines, an Atlanta-based major US carrier, said it is confident on the long-term growth potential of Sino-US aviation market and will continue to launch new flights, spurred by robust demand, despite the overcapacity of the market and the ongoing Sino-US trade dispute.
In October, two Sino-US direct flights stopped operations, dampened by rising fuel costs and overcapacity of the competitive market.
Fast M&A approval from the CSRC is also in line with China's national goals such as supply-side reform, overcapacity cuts, and upgrade of economic structure, Song said.
Chemical and machinery companies also expect satisfactory profit growth as China's continued emphasis on industrial restructuring and environmental protection has tackled overcapacity and prompted rising prices in industrial products.
Zhou Qinye, an outside director of China Chengtong Group, said that equity investment will attract more private capital to contribute to SOE reform, helping SOEs to address overcapacity more efficiently, reduce debt, and set up modern operating models.
More specifically, it means the main missions will be to reduce overcapacity and overstocking, to push deleveraging, to lower costs, and to address the inadequacies in economic development.
New modes of businesses are emerging and the process of cutting overcapacity is making progress.
Starting in 1992, the traditionally labor-intensive industry faced serious overcapacity issues and this led the local government in Shanghai to restructure the industry which resulted in the retrenchment of thousands of textile workers, most of whom were middle-aged women.
On the other hand, in the fields suffering from overcapacity, all the participants are facing increasing pressure from competition.
As huge as the Chinese market grows, the PV sector is about to experience an industry reshuffle that will see the elimination of those with overcapacity and limited competitiveness.
Chinese e-bike producers said that unlike other trade complaints, there is no overcapacity in China's e-bike industry.
China has already indicated the areas in which it will focus its reform efforts, including supply-side structural reforms (including in agriculture), reducing inventory, addressing overcapacity, deleveraging debt, alleviating poverty and addressing other pressing issues.
"Since State-owned enterprises play a significant role in China's economic growth, the central government has been promoting a series of reforms to cut overcapacity and low-productivity, which had dragged down profits.
“鉴于国有企业在中国经济增长中扮演着重要角色，中央政府一直在推动一系列改革，旨在削减过剩产能和低效生产，这些因素曾拖累了利润。”
The move is the country's latest effort to cut overcapacity in the coal and power sectors by restructuring state-owned enterprises, which is expected to improve corporate profitability and efficiency.
The plane is also an example of how China will further its supply-side structural reform, and make more efforts to improve economic quality, promote innovation, cut overcapacity and foster new growth drivers.
The data also showed China's central SOEs reduced 59.5 million tons of iron and steel overcapacity and 25.23 million tons of excessive coal capacity in the first 10 months.
China has closed many old plants and merged hundreds of producers in pursuit of efficiency, and cutting overcapacity.
"The first task for these two new groups would be cutting overcapacity and overlapping services, putting resources into new products such as heavy load, special railway vehicles and railway vehicle brakes to diversify product categories," said Zhao Jian, a professor of rail transportation at Beijing Jiaotong University.
It comes as the country is trying to cut industrial overcapacity and streamline State-owned enterprises.
Analysts said some SOEs in the energy and heavy industry sectors suffer from overcapacity, and the integration will help reduce overcapacity and take advantage of both companies' strengths and resources.
The two companies are complementary to each other and enjoy a certain degree of synergy, and the merger of the upstream and downstream sectors could help ease structural problems in the power industry, which suffers serious overcapacity, said Zhang Jinxin, head of the Center for China Mergers & Acquisitions Research at Beijing Jiaotong University.
The ongoing supply-side restructuring in China, tax cuts and overcapacity reduction have boosted demand.
As for challenges, cutting overcapacity will be necessary for the long-term benefits of the economy.
"The Belt and Road Initiative does not mean only selling our products or 'transferring overcapacity' to other countries and regions," said Li.
"Deepening SOE reform is also critical in cutting industrial overcapacity.
The merger talks of the two giant groups started last August, when the State-owned Assets Supervision and Administration Commission approved their merger to cut overcapacity and maintain competitiveness of the cement industry.
Two State-owned building materials firms－China National Building Materials Group Corporation and China National Materials Group Corporation Ltd－started merger preparations in the latest move of SOE consolidation and shedding of cement industry overcapacity.
According to Jiao Fangzheng, Sinopec's deputy general manager, Epec conforms to China's ongoing supply-side reforms, which aim to sustain high economic growth on an increasingly bigger base through manufacturing upgrade, industrial restructuring, reduction of overcapacity in certain industries like coal and steel, innovation and thrust on high-tech industries.
"The market's expectation of overcapacity reduction helped keep the metal prices high in the first half," said Xu Ruoxu, an analyst with Shenwan Hongyuan Securities, adding that the listed company's shares have been on an upswing since June this year.
Under downward pressure, China's steel sector, already burdened by overcapacity, has been hurt by shrinking demand.
China should also intensify efforts to clear out zombie enterprises, or weak businesses that are not viable, usually in industries with severe overcapacity and kept alive only with aid from the government and banks, according to the financial work conference.
Analysts and industry insiders expect that possible mergers and restructuring between central SOEs will help reduce overlapping investments and ease overcapacity in the coal and power sectors.
China has vowed to further cut its industrial overcapacity to accelerate restructuring of the nation's huge SOE sector.
In the past two years, cutting overcapacity has also accelerated in China, as well as industrial mergers and reorganization, amid the government's effort to deepen supply-side structural reform.
BEIJING － China's central State-owned enterprises have pledged to continue to cut production overcapacity in some industrial sectors, aiming to reduce steel capacity by 5.95 million metric tons and coal by 24.73 million tons.
Zombie companies are economically unviable businesses, usually in industries, with severe overcapacity, which only survive due to financing from the government and banks.
The latest efforts by the central SOEs will reinforce their achievements made in 2016 in reducing overcapacity.
The capacity cut drive by central SOEs is only a part of China's bigger picture in slashing overcapacity.
To improve its growth quality and efficiency, China began its supply-side structural reform in 2015 to cut overcapacity, reduce inventory, deleverage, lower costs and strengthen weak links.
Overcapacity, poor corporate governance and low productivity had dragged down profits of China's SOEs, which deteriorated in 2015.
Such hurdles include a lack of effective demand, overcapacity in some industries, weak social expectations, and numerous hidden risks.
这些难题包括缺乏有效需求、部分行业产能过剩、社会预期疲弱以及大量隐藏风险。
Industries with overcapacity will likely face pressure with the deepening of supply-side structural reforms and will have limited access to tax cuts and fee reductions, he added.
"Despite facing challenges from a complicated and grim external environment, lack of effective demand, overcapacity in some industries, weak expectations and other risks, the favorable conditions for China's economic development outweigh the headwinds," Liu said at a Friday news conference in Beijing.
According to a Xinhua News Agency report, the conference noted that China continues to face challenges such as lack of effective demand, overcapacity in certain sectors and lackluster social expectations.
This is surely due to weakening external demand, declining exports and more importantly, overcapacity due to sluggish demand at home and abroad after years of rapid expansion in some manufacturing sectors.
Supporting real estate will be less efficient after the appearance of the inflection point in the real estate cycle, and the effect of supporting investment through policy financing may damage the supply and demand balance and eventually lead to aggravated overcapacity.
If this trend were to continue, it would pose setbacks to the supply-side reform that started in 2015, through which China took pains to cut overcapacity, reduce excess inventory and upgrade industries.
The resource-rich region has been long afflicted by industrial overcapacity, shrinking resources and the outflow of talent.
The falling global oil prices forced many shipyards and heavy industry companies to lose orders and face overcapacity issues.
However, thanks to supply-side reforms, overcapacity issues in the raw materials and intermediate goods sector have been substantially alleviated.
The National Development and Reform Commission said the move will help reinvigorate various enterprises, prevent a new round of repetitive construction and overcapacity, and promote high-quality development.
In the medium to long term, we will still see overcapacity in global commodities.
With the government planning to complete more than 70 percent of the mission for its 2020-22 action plan for SOE reforms, it is vital to promote professional integration between central SOEs, especially those with homogenized businesses and overcapacity, said Li Jin, chief researcher at the China Enterprise Research Institute in Beijing.
The current structural contradiction between overcapacity of low-end goods and a supply shortage of high-end products in China's petrochemical industry has yet to be fundamentally reversed, especially in the fields of high-end synthetic materials, functional materials, medical materials and high-end electronic chemicals, he said.
Aside from cutting SOEs' administrative functions and overcapacity in certain industries, China launched a 200-billion-yuan fund in Shanghai late last month to facilitate mixed-ownership reform and cutting-edge technology innovation at its SOEs.
In recent years, China has taken solid steps to cut overcapacity, particularly in the energy-consuming steel sector.
Facing pressure from the overcapacity of iron production as well as air pollution, many steelmakers and iron ore mines have been closed in the nation's pursuit of green high-quality development.
In 2013, Chen decided to expand his business to South Africa to manufacture non-woven fabrics in the region because the industry was then struggling with overcapacity in China.
In 2013, Chen decided to expand his business to South Africa to manufacture non-woven fabric in the region because the industry was then struggling with overcapacity in China.
China's new energy industry has made positive contributions to global and EU green transitions, and the EU's allegations of "overcapacity" in China's EV sector are unfounded, Wang said.
Chinese PV firms lead the world, but overcapacity, price weakness loomChina's solar industry climbed to new heights in 2023, with manufacturing, installed capacity and exports experiencing robust growth and reshaping the global landscape with continuous technological breakthroughs.
中国光伏企业全球领先，但产能过剩与价格疲软隐忧显现
2023年，中国的太阳能产业攀登至全新高度，其在制造、装机容量和出口方面均实现了强劲增长，并通过持续的技术突破重塑了全球格局。
However, currently, industries such as power batteries and other low-carbon-related equipment manufacturing sectors are experiencing short-term overcapacity issues.
Prices in the photovoltaic and energy storage industry chains are consistently decreasing, indicating periods of temporary overcapacity," said Zhu Gongshan, chairman of Golden Concord Holdings Ltd, a major PV company.
"However, overcapacity is a natural phase in market economies.
On the other hand, the shutdown of outdated capacity has also been accelerating with the continuous progress of industry technology and increasing competition and the issue of overcapacity has always been a temporary phase looking at the development of the past decade.
Wang Bohua, the honorary secretary-general of the CPIA, said many domestic PV manufacturers are now ramping up output to tap the burgeoning market, which may intensify competition and lead to overcapacity.
Some Chinese manufacturers may face the risk of overcapacity at that time," Jiang said.
As China deepens supply-side structural reform, Hebei, which neighbors Beijing, has made headway in cutting overcapacity and pollution, and in the pursuit of green and balanced development.
To reduce overcapacity amid China's ongoing industrial upgrade, Yao's factory was ordered to cease production in late 2018.
However, if the overcapacity issue were not solved, there would be no way to upgrade the industry.
With overcapacity reduced, steel-makers that remain operational have upgraded their technology and equipment to save energy and cut pollution.
Ordos' plan would be a boost for domestic electrolyzer manufacturers as the newly announced green hydrogen projects in the city could potentially alleviate some electrolyzer overcapacity, said Wei Hanyang, an analyst with BloombergNEF.
Zhang Haideng, deputy director of the department of raw materials industry at the Ministry of Industry and Information Technology, said at the CISA event the industry is being tested by the most severe challenge since the slashing of overcapacity began in 2016, and needs to coordinate development with upstream and downstream industries.
"By recognizing existing challenges confronting the Chinese steel industry, including overcapacity, insufficient safety, less developed green and low-carbon standards, and relatively low industrial concentration, the guideline has set detailed targets and raised specific approaches for the sector's high-quality development," Wang said.
They also urged the industry to seek high-quality development based on green and low-carbon growth pathways and technological innovations, as it faces challenges such as overcapacity, reliance on imported iron ore and tightening environmental protection requirements.
Yet, the average flight ticket price this year is lower than that of last year and 2019, and the market is foreseen to see some overcapacity.
然而，今年的平均机票价格比去年和2019年都要低，且市场预计会出现一定程度的运力过剩。
With a large number of companies operating similar routes along the Yangzte, business operations have been homogenized with overcapacity and fierce competition.
长江沿线有大量公司运营着相似的航线，导致业务运营高度同质化，出现严重过剩产能及激烈竞争。
The ministry would also work actively with government bodies, including the National Development and Reform Commission, to consolidate the achievements in overcapacity cuts in the past few years, Lyu said.
陆部长表示，该部还将积极与包括国家发展和改革委员会在内的政府机构合作，巩固过去几年在削减过剩产能方面取得的成果。
Up to 170 million tons of overcapacity had been cut in the steel sector during the 13th Five-Year Plan period (2016-20), and 229 Chinese steel enterprises were undergoing an ultralow emission restructuring by the end of 2020, according to the Ministry of Ecology and Environment.
据生态环境部数据，十三五期间（2016年至2020年），钢铁行业已削减过剩产能达1.7亿吨；至2020年底，全国有229家钢铁企业正在开展超低排放改造。
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