Photo: iStock
The report suggests that current financial support and tax reduction policies should focus on crowding out ineffective and inefficient investments. Photo: iStock

The Chinese economy is expected to grow at a rate of 6.6% in 2018, according to the latest report published by Chinese Academy of Social Sciences, reported.

While more than 80% of economists believe that the economic growth rate will reach or exceed 6.5% this year, at least 74% predict that over the next 10 years, overcapacity will be eased, but … there will still be a number of industries that will struggle with the problem.

The most fundamental cause of overcapacity is believed to be the lack of innovation ability and advanced technology. This has resulted in the surplus of low-end products and the shortage of high-end products, since producers fail to adapt to diversified needs.

Thus, the majority of the economists believe that the government should set standards for the exit of production capacity, covering environmental protection, energy consumption, quality, safety and technology standards.