Influenced by insufficient order, excessive capacity occurs in the machinery industry in China. With the slow down of investment and the jumpy export market, the demand for machinery products decreases greatly, and the product inventory rises by 20% year-on-year, which is far greater than that of last two years which is about 10%. Meanwhile, the product order obviously slows down and the insufficient order further highlights the problem of overcapacity. And such condition will continue to grow worse in 2012.