China is facing potential overcapacity of goods in more areas of the economy, according to officials.

The Chinese government today (15 December) pledged to tackle the problem amid fears that it could present a barrier to growth and lead to job losses.

Ma Kai, head of the National Development and Reform Commission, predicted that China may face new problems with overcapacity in textiles, cement, electric power and coal.

Potential problems could take a number of years to overcome, Ma said. He pointed out that overcapacity was already having an effect on the steel, aluminium and auto sectors.

Ma was reported by Xinhua news agency as saying: "Although demand and supply are basically balanced in some industries now, we cannot ignore potential overcapacity".

Possible solutions would be company mergers and modernised technology, Ma said.