Overcapacity means having or producing more of something than what is needed or can be used effectively. It refers to a situation when there is an excess supply or capability compared to the demand or requirement. Full definition
The rush to build over the past five years has left China drowning in overcapacity in many key sectors. (canadianbusiness.com)
Move still falls short of halting build - up of overcapacity in coal - fired power generation, critics says (scientificamerican.com)
The People's Bank of China has not adjusted interest rates since October 2015, and analysts don't expect any short - term easing steps as focus remains on reduction of industrial overcapacity and stemming credit risks. (fortune.com)