Statistics show that the PMI of China's manufacturing industry was 50.6 in November last year, up 0.4 percentage points from October, and the index has steadily rebounded slightly in the past three months, indicating that the domestic economy has bottomed out. However, it is worth noting that the current operation of small enterprises is still not improving, and its PMI index has been below the 50% rise and fall line since April. Overcapacity in the pharmaceutical industry has begun to drag down a large number of bases, and the production of pharmaceutical products is mainly concentrated in the low-end equipment of the pharmaceutical market. In the first half of the year, the pharmaceutical machinery industry continued to show a stabilizing trend, but the foundation for recovery was not solid, and the more important operating indicators such as revenue, price, and profit performed poorly. From the overall perspective of 2013, the current recovery of the manufacturing industry is not stable. The pharmaceutical machinery industry is a branch of the manufacturing industry, and the general environment affects the relative process of the industry. Final policy expectations are limited; it remains to be seen how the country will set the tone for the economic trend in 2013. In the process of development, national policies such as energy conservation and emission reduction, monetary easing have a significant impact on the industry. The development of pharmaceutical machinery enterprises needs to pay more attention to the changes of the industry and adjust flexibly according to their own operating conditions. In the case of limited policy expectations, the development of the equipment manufacturing industry in 2013 may show a cautious state. Overcapacity refers to the situation in which the best output of fixed capital, labor, raw materials and other factors at a certain level of technology exceeds the actual output determined by market needs, that is, the supply of products exceeds demand. Moreover, it refers specifically to the state in which aggregate supply abnormally exceeds aggregate demand, which mainly includes two aspects: on the one hand, aggregate supply is certain and aggregate demand is relatively insufficient, and on the other hand, aggregate demand is certain and aggregate supply is relatively surplus. This kind of overcapacity will lead to serious problems such as low equipment utilization, increased inventory of finished products, lower product prices, and large-scale losses of enterprises. The negative impact will exceed the positive impact. Some people in the industry believe that because most of the products in the pharmaceutical industry are low-end products, the homogenization is serious, and the profit growth caused by overcapacity has slowed down. Therefore, pharmaceutical companies should realize that overcapacity is an unavoidable problem in the industry. Accelerate the elimination of backward production capacity, and the development of downstream application market, as soon as possible to digest excess capacity is imminent.