Abstract: This paper, by using stochastic frontier production function Sfpanel(the time-varying inefficiency)model to measure the 1999-2014 China industrial subdivision 36 industry capacity utilization rate and dynamic performance.Study found:Before 2008,The capacity utilization rate of industrial sector in China showed stage capacity surplus as "m-type",After 2008, the excess capacity showed gradually fluctuating trend of long-term, comprehensive overcapacity;The identification of industrial overcapacity in the heavy chemical industry is consistent with the previous research but discover the new heterogeneity; Some traditional light industry and a few high-tech industries have new features of overcapacity.