overcapacity

American  

[oh-ver-kuh-pas-i-tee] / ˌoʊ vər kəˈpæs ɪ ti /

noun

plural

overcapacities

1. capacity beyond what is normal, allowed, or desirable.

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overcapacity British  

/ ˌəʊvəkəˈpæsɪtɪ /

noun

1. the situation in which an industry or business cannot sell as much as it produces

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Etymology

Origin of overcapacity

First recorded in 1925–30; over- + capacity

Example Sentences

Exports are an even greater necessity for Chinese firms than their European rivals because they face significant overcapacity.

From Barron's • Apr. 22, 2026

Double-digit growth in trade is expected to underpin resilient industrial production, despite the tensions in the Middle East and Beijing’s campaign against overcapacity.

From The Wall Street Journal • Apr. 10, 2026

The Section 301 probes cite unfair practices, such as trade surpluses and industrial overcapacity, with China identified as a primary source of the problem.

From The Wall Street Journal • Mar. 14, 2026

State-backed investment has already led to much criticism, and overcapacity in industries such as electric vehicles.

From BBC • Mar. 11, 2026

Unlike other forms of Internet overinvestment, it was permanent: Once the fiber cables were laid, no one was going to dig them up and thereby eliminate the overcapacity.

From "The World Is Flat" by Thomas L. Friedman