The People's Bank of China (PBoC) surveyed the overcapacity situation in 696 industrial enterprises in Jiangsu province and published the results in a Working Paper on December 11, 2015. According to the survey, the capacity utilization rate of these industrial enterprises in Jiangsu province has decreased remarkably in recent years. Most of the industrial enterprises surveyed expect it will take some time for capacity utilization to normalize. However, there is also a diverging trend among firms in different industries. While capacity utilization in traditional sectors such as iron, steel and cement is low, some emerging sectors such as solar PV and wind power equipment manufacturing have shown improvement after structural adjustments in recent years. This paper also looks into the causes of overcapacity and puts forward some policy recommendations.