Since 2000, China's paper industry has experienced high-speed development period, and the world's first paper is established in 2008, the per capita use has increased significantly. But at the same time of the fast development of the industry, some phenomenon began to appear, including excess capacity. In the development of many industries in our country, there are problems of excess capacity or had, a typical such as steel, aluminium, etc. Excess capacity is often accompanied by excessive competition, which makes the whole industry is in a state of recession. So, if you can through the study found the problem as soon as possible, and to take appropriate measures to control and alleviate the degree of excess, for the industry of the enterprise and the government is very meaningful. This paper consulted many domestic and foreign scholars about the overcapacity problem of theory and empirical research. And then tried to through a series of quantitative indicators to evaluate the present situation of papermaking industry in our country, so as to identify the industry exists certain overcapacity problem. And adopted by the analysis of the current government close down backward production capacity, the effectiveness of the measures for solving the surplus, found that the effect is very limited. According to these situation, and combined with other industries and foreign experience, put forward need to deal with by means of merger and acquisition, consolidation of excess capacity problem.
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