（1） When the economy is in a boom cycle, enterprises are too optimistic about the expected product sales, ignore the current situation of industry capacity, and blindly embark on projects. When the boom cycle is over, the assets are idle. （2） The reform of government functions is lagging behind, and we still adhere to the planned economy thinking to allocate resources, approve funds and projects. Weakened the market Resource allocation The fundamental role of, and market mechanism Requirements run counter to each other, resulting in repeated investment and excess production capacity 。 Because a few managers beat their heads to make decisions, many violated market rules The repeated investment and waste of production capacity caused by deviation from the actual situation is a persistent ailment of this system. （3） The promotion and appointment of cadres are linked to GDP, which is also the cause of repeated investment. Under this guiding ideology, in order to be promoted as soon as possible, some regional department heads are more concerned about the speed of economic development in the region, the amount of GDP and revenue And pay little attention to the quality of growth. Even projects with overcapacity are going fast because they can increase local GDP. As a leader of the Guangdong Provincial Party Committee said, "The starting project is GDP, and the demolition and construction is GDP.". （4） The division of regional sectors into different sectors is also the cause of repeated investment. Some regional departments are fragmented, but facing the international and domestic markets, they have not formed the idea of the whole country playing a chess game. They are in their own right. The relevant competent departments also lack effective organization, coordination and planning. A project started in one place has good benefits. When other places know about it, they will follow up immediately, rush forward and make repeated investments. The result can be imagined: the market immediately changed from the seller's market to the buyer's market, with prices falling, enterprises losing money or even going bankrupt, resulting in idle assets.
（1） The consequences of repeated investment are excess production capacity , same as industry There is disorderly competition between them, and profits decline until losses and bankruptcy. This caused a series of social and financial problems. The repeated investment in the steel industry has long been well known. When China's economy overheated in 2007, the supply of steel products fell short of demand, and the price climbed profit As a result, some places have repeatedly invested in building steel plants for local interests. And when global financial crisis After the outbreak Weak market , plus repeated investment excess production capacity Steel prices fell sharply and the industry suffered losses. In the second half of 2008, the state invested 4 trillion yuan Infrastructure construction After that, the steel industry seemed to see hope again, competing to import a large amount of iron ore from Australia. The disorderly competition, coupled with the collusion of economic traitors inside and outside, caused China, the world's largest iron ore importer, to have no say in iron ore pricing. The Australian side led the way, and iron ore prices rose steadily. On the other hand, due to excess production capacity , rigid enterprises often compete with each other on sale The result is a decline in profits. As can be seen from the accounting equation, profit =Income and expense: on the one hand, the price of imported iron ore keeps rising and the expense increases; on the other hand, steel enterprises compete to lower the price, resulting in a decrease in sales revenue. This increase and decrease squeeze the only point in the industry Profit space 。 The situation of China's rare earth industry is even worse. Repeated investment in many regions and rare earth mining and rough processing everywhere, excess production capacity 。 In the face of the international market on sale In addition, foreign purchasers formed alliances to suppress prices, resulting in the selling price of non renewable precious rare earth potatoes. China, which accounts for about 43% of the world's rare earth resources, has no say in export pricing and is at the mercy of foreign businessmen. （2） In terms of infrastructure construction, in the second half of 2008, in order to maintain a steady and rapid growth of the national economy, the country implemented a proactive fiscal policy And moderately loose monetary policy, investing 4 trillion yuan to build infrastructure. Some regional departments, regardless of the actual situation, excessively pursue GDP, report plans and run projects, resulting in a large amount of public finance and bank loans flowing to areas with excess capacity. For example, in some areas, the population density is small, and the natural resources are not rich. There are already railways and national highways running through the whole territory. The transportation is very convenient. However, they are still applying for the construction of highways,. It is conceivable that once the expressway is opened, it can only become a decoration, which is not much economic significance On the contrary, we have to pay high maintenance and management costs every year. Of course, the country has to pay for this. The consequence is the idleness and waste of excess assets, and taking taxpayers' money seriously. （3） Repeated investment projects are mostly high energy consumption and high pollution industries. It is characterized by heavy pollution, water consumption, energy consumption and rare raw materials consumption, which will cause damage to the regional environment and occupy a large amount of land resources.
（4） Repeated investment causes enterprise occupation Cost of capital Too high. In particular, China's capital market is not perfect, and enterprises financing channel It is not smooth yet. There is a shortage of funds. When enterprises face a huge capital gap for survival and development, the cost of capital occupation is very high. A large amount of fixed assets means a large amount of Depreciation expense Under the condition of constant income, it will lead to a decrease in profits, and at the same time, it will also increase the business risk 。 Under normal circumstances, the recovery time of fixed asset value is relatively long, but in the era of rapid development of science and technology, the upgrading cycle of products is getting shorter and shorter, the asset value has not been fully recovered, and the equipment is likely to be eliminated in advance, causing huge losses to enterprises with repeated investment. （1） When the economy is in a boom cycle, policy makers should not be blindly optimistic. They should make scientific and democratic decisions on the basis of investigation and research to make investment more reasonable. （2） The functions of the government should be reformed. To strengthen the market in Resource allocation The fundamental role of. （3） The assessment, promotion and appointment of cadres cannot be fully linked to GDP. It is necessary to assess not only the quantity of GDP growth, but also the quality of growth, so as to prevent quick success and instant benefit.
（4） To break the situation of division of regional departments and establish the idea of "one game for the whole country", the competent departments should effectively exercise the functions of organization and coordination, do a good job in industrial revitalization planning, and avoid duplication of construction.
（5） We should use legal means to formulate standards for energy consumption, material consumption and pollutant emissions to curb the repeated investment of high pollution and high energy consumption.
（6） We should accelerate the pace of mergers and acquisitions. Through merger and reorganization, the asset investment scale is controlled within a reasonable range to ensure the realization of profits, reduce the occupation of assets, and improve the utilization rate of assets.
