Abstract: Seed over capacity is due to the current system of seed industry,especially the hybrid rice and corn seed market,which is relative and structural,blocking the seed industry development in China. Overcapacity results in low economic level,low competitiveness and low creativity,which is reduce the competitiveness of Chinese seed industry in the world open market.It is necessary for Chinese seed industry development to solve concept,industry system,resources,technology and service etc in order to come out of the passive situation.

Key words: seed industry, over capacity, cut overcapacity