Reducing excessive capacity actively and steadily has become an important part of promoting the supply-side structural reform, and also an urgent and arduous task of the current economic work of Jiangsu.Jiangsu has made positive progress in reducing excessive capacity, which can be seen in the following aspects: rapid progress has been made in reducing excessive capacity and strong efforts have been made to stabilize employment.Problems encountered in the process of reducing excessive capacity in Jiangsu1. Lack of understanding. Reducing excessive capacity is conducive to the structural improvement and long-term sound economic development, but it will have a tightening effect in the short term. Some regions and enterprises have insufficient understanding of the importance and urgency of the work of reducing excessive capacity.2. Game of interests. As a whole, if excessive capacity can be reduced, supply and demand will be balanced, PPI will pick up, corporate profits will increase, and the industry and economy will develop. However, from a local point of view, each individual hopes to let others reduce rather than themselves, and finally individual rationality leads to collective irrationality, and excessive capacity is trapped in the prisoner's dilemma.3. The means need to be optimized. Reducing excessive capacity in our province has shown initial results, but administrative intervention plays an important role in it.Suggestions on the countermeasures of establishing the marketization mechanism of reducing excessive capacity under the rule of law1. Unswervingly reduce excessive capacity.2. Tackle zombie companies. "Zombie enterprises" occupy a large amount of capital, land and other scarce resources, rely on government subsidies and bank transfusion for survival, and compete with others unfairly. 3. Introduce precise policies to speed up market clearing.4. Expand channels to do a good job of employee resettlement.
