Professor Lu Feng at Peking University has discovered that China is experiencing a new round of overcapacity in petrochemical raw materials, conventional non-high-end chips, automobiles, new energy vehicles (NEVs), power batteries and others.

Previously, domestic advanced and cutting-edge industries never experienced such an excess pressure and risks. In recent years, China's trade surplus in industrial products has reached a scale of 1.5 trillion to 1.7 trillion US dollars, accounting for about 30% of the total of industrial added value. It indicates that the domestic industrial sectors are highly dependent on external markets.

In view of a new round of overcapacity, the country is required to take precautions.