China's Ministry of Commerce States Industrial Capacity Utilization is Within Reasonable Range
Lin Weilong, Director of the Policy Research Office of China's Ministry of Commerce, stated on July 28th that the concept of "overcapacity" and related issues have been a subject of international debate without broad consensus. He asserted that from China's developmental perspective, its industrial capacity utilization rate is generally within a reasonable range.
According to data, the capacity utilization rate for industrial enterprises above a designated size was 74.4% in 2025. Sectors such as high-tech manufacturing, high-end equipment manufacturing, and strategic emerging industries are experiencing more robust capacity utilization. Conversely, some traditional industries, like raw materials, are facing temporarily lower utilization rates. The Ministry attributes this to adaptive adjustments resulting from structural reforms and green transitions, viewing it as a normal aspect of industrial upgrading and quality improvement. Overall, China's industrial sector is characterized by a basic balance between supply and demand and stable operational trends.
The Chinese Ministry of Commerce's statement frames lower capacity utilization in traditional sectors as a normal part of structural and green transitions, rather than an indicator of systemic oversupply. This perspective emphasizes industrial upgrading and quality improvement as drivers for these adjustments. The analysis highlights that while advanced manufacturing sectors show high utilization, traditional industries face challenges, suggesting a bifurcated industrial landscape. The long-term implications of such transitions, particularly concerning resource allocation and global market dynamics, warrant careful observation as China navigates its industrial modernization in the context of evolving global economic and environmental priorities.
AI-generated to prompt reflection — not editorial opinion, not advice, not a statement of fact. How this works.