Although a market oriented economic system has been established, the traditional planned economic system still exists in a way, the to be marketization of element resources resulting from the fact that the government still controls a large number of resources, together with the reform lag of state owned enterprises, lead to the imbalance of economic structure with both excess and shortage of production capacity. We should change the investment system led by the government to the investment system led by the market, reform and restructure the state owned enterprises, make the right industrial policies to guide economic development; at the same time, we should actively implement the “The Belt and Road” strategy, guide the digestion of excess capacity, and create the effective market demand to effectively solve the problem of excessive production capacity.