Editorial: To Fix Overcapacity, Let the Market Do Its Work

At the end of last year, the Central Economic Work Conference highlighted that further promoting economic recovery necessitates overcoming certain challenges, including “excess capacity in some industries.”

This year’s government work report reaffirmed this point. Recently, numerous experts and scholars have pointed out that the current bout of excess capacity is distinct from those of the past, most notably in that several cutting-edge and emerging industries are under more pressure from excess capacity than traditional industries. This issue urgently requires significant attention and needs to be handled properly.