A senior Chinese official Thursday warned of increasing industrial overcapacity, saying that expansion of some industries has outrun growth of market demand.

Boosted by government policies, domestic market demand increased fast, but industrial capacity expanded even faster, Jia Yinsong, an official of the Ministry of Industry and Information Technology, told a press conference.

The situation made industrial overcapacity more serious and caused price fluctuations, he said.

(Xinhua News Agency December 3, 2009)