The 16th Issue of Policy Briefing, NADS: The Quantitative Analysis of Overcapacity of SOEs

Based on the assessment method of enterprise’s capacity utilization and China’s industrial data from 1998 to 2013, the paper compares in turn the capacity utilization of 139 SOEs and non-SOEs with a three digit capacity, and also gives an analysis of the impact of SOEs on capacity utilization. The results show that across all the 139 industries, the figure of SOEs is lower than that of non-SOEs at around 20%-40%. The overall weighting capacity utilization of SOEs takes only about 70% of non-SOEs. This paper also finds that SOEs reform (withdraw state-owned capital) could improve the rate of companies. With all other factors under control, withdrawing state-owned capital could generate an average increase of 10% for enterprise capacity utilization.

The 16th Issue of Policy Briefing, NADS: The Quantitative Analysis of Overcapacity of SOEs