The effort to cut overcapacity has yet to make any substantial progress and the society in general does not have proper understanding of what it entails. China has continued to intensify its effort in cutting overcapacity. Chen Gong, chief researcher at ANBOUND Consulting suggests that the cutting of overcapacity has to do with the world's structure. If China’s official policy were to align with the world, there should be more concerted efforts in building a management based and service-oriented society. Although the problem is not as simple as this, this direction has now become increasingly obvious.