At present, the main principle of resolving overcapacity is the "four batches" proposed by the "Guiding Opinions on Resolving the contradiction of Serious overcapacity", that is, "digesting a batch, transferring a batch, integrating a batch, and eliminating a batch." Among them, "digesting a batch" needs to continue to expand domestic demand at the same time, for domestic and foreign market demand, adjust the structure of products to achieve product upgrading; The "elimination of a batch" has had a certain effect under the force of the market mechanism and administrative means, and Jiangsu Province has also exceeded the "Twelfth Five-Year" elimination task issued by the state in advance. "Transfer a batch" of external output capacity, Jiangsu Province should vigorously promote the "going out" strategy, in accordance with the "international production capacity cooperation", in Latin America, Kazakhstan and other countries and regions to carry out in-depth cooperation.

Plan one, the need to make a top-level design at the national level, specifically by the state, between the provinces on steel, coal and other serious surplus industries to implement equal proportion of production cuts. For the first time, the national production reduction can be considered in accordance with the proportion of 10%-20%, and the relevant state departments and relevant provinces sign a commitment or agreement to reduce production. The second step is to allow open trading of the quotas. For example, the two provinces need to reduce production by 2 million tons each. Because one province is highly competitive and the other is weak, the highly competitive province can buy 2 million tons of production reduction quota from the other province without resolving its own production capacity. The party that sells the quota can get a sum of funds to give the closure and exit of the enterprise subsidy. After the short-term one-time capacity cleanup of the crisis, it is more important to establish a long-term mechanism to prevent similar problems from happening again.

Second, promote the integration and reorganization of enterprises in large economic regions. In the resource-based raw material industry, we can not rely on simple excessive competition and price war to solve the problem of excess, but should use more advanced market means and market functions to solve, that is, joint restructuring and market integration. This is also the successful approach adopted by the world after the problem of surplus in the basic raw materials industry. In regional integration, the first is equity cooperation, in this region, everyone is a shareholder, the concentration of each enterprise into a large company, and then unified planning, unified management, unified production capacity, scientific and reasonable play to the capacity of the cement production line in the region. Second, large enterprises should replace each other's production capacity. Large enterprise A has production capacity in this region, and large enterprise B has production capacity in that region, so that the two large enterprises can concentrate the production capacity of a region toward a large enterprise through the method of capacity replacement, so that a large enterprise occupies the main market share in a region.

Plan 3: Promote structural adjustment and scientific and technological innovation to enhance effective supply. In the long run, upgrading the industrial structure, adjusting the product structure, and building a modern industrial system that ADAPTS to demand are the fundamental ways to reduce production capacity. Taking Jiangsu Province ship repair industry as an example, ship repair industry is one of the industries with excess capacity in Jiangsu Province, which is characterized by a serious surplus of ordinary dry bulk ships lacking technical content. Optimize the structure of ship repair industry along the river and coast of Jiangsu Province, encourage the development of special ship repair industry with high added value, and limit the capacity of general dry bulk ship repair with low added value. Promote the Marine ship repair industry concentrated intensive development, dislocation development, and rebuild the international competitiveness of our province's ship repair industry.

Plan four, capacity internationalization. We will implement the "going global" strategy and accelerate the international transfer of production capacity. In the context of global industrial restructuring and deepening industrial division of labor, it is necessary to coordinate the domestic and international "two markets" and "two resources". Encourage Jiangsu enterprises to "go out", make full use of various international economic cooperation platforms, strengthen global industrial cooperation, actively guide the orderly transfer of industries to the outside world, promote strategic emerging industries and industries with core competitive advantages to actively participate in foreign competition, create new productivity, and release new supply in the global market. Make full use of the opportunity of building the "Belt and Road" to speed up production capacity output. We will focus on cultivating a number of large cross-border circulation enterprises and opening up international circulation channels. We will implement necessary policy incentives to guide the overseas transfer of industries.

Plan 5. Liquidation and bankruptcy according to law. The round of policy bankruptcy in the late 1990s should now consider restarting the corporate bankruptcy mechanism. It is necessary to create conditions for the implementation of market-oriented bankruptcy procedures in accordance with the law and speed up the trial of bankruptcy liquidation cases. Especially those zombie enterprises, completely lost the possibility of resurrection, such enterprises must resolutely implement bankruptcy liquidation. For these bankrupt enterprises, we should introduce and implement policies such as fiscal and tax support, disposal of non-performing assets, re-employment and living security for the unemployed, and special awards and subsidies, and the capital market should cooperate with the merger and reorganization of enterprises. We should do more mergers and reorganizations as much as possible, less bankruptcy and liquidation, and do a good job in resettling workers. It is necessary to strictly control the increase of production capacity and prevent new overcapacity.