Abstract In the open economy, the interaction between domestic investment expansion and excessive use of foreign capital as well as inhibition or transformation of the main domestic consumption may lead to excessive capacity. The advancement of industry maturity and standardization of products promoted by International factor mobility and industrial transfer will also lead to the capacity expansion in advance. Technological advances will promote the production efficiency and the acceleration of scale enlargement. Unusual events such as disaster and policies can induce excessive capacity through economic and psychological conduction. The regulation of capacity and prevention of the excessive production should be based on multiple perspectives. Both internal and external markets as well asmarket restoration should go along with policies
DAO Zhong-Yuan. The Formation Mechanism of Chinese Excessive Capacity under Open Economy:Theoretical Interpretation from Multiple Perspectives. Economic Survey, 2011, 28(4): 020.
2011, Vol. 28 
