Capacity utilization rate is an important indicator of manufacturing economic activities in a country or region, which reflects the production efficiency and economic operation status of industrial enterprises. In China, Capacity Utilization Rate refers to a measure of the degree of production capacity utilization of manufacturing enterprises within a certain period of time.

The calculation method of capacity utilization rate is to compare the actual products produced by the enterprise with the production capacity of the enterprise to obtain the percentage of capacity utilization rate. Generally speaking, the higher the capacity utilization rate, the higher the production efficiency of the enterprise and the lower the production cost, which helps the enterprise to improve its profit margin and market competitiveness. On the contrary, if the capacity utilization rate is low, it means that the production efficiency of the enterprise is low and the production cost is high, which may affect the profitability and market competitiveness of the enterprise.

The National Bureau of Statistics is responsible for the calculation of China's capacity utilization rate, which usually conducts surveys on large-scale manufacturing enterprises. The calculation of production capacity also needs to take into account some factors, such as enterprise size, technology level, production links, and market demand. China's capacity utilization rate is affected by various factors, such as market supply and demand, macroeconomic policies, and industry competition.

The capacity utilization rate has an important reference value for the business decision-making, policy formulation and market supervision of enterprises. For enterprises, the level of capacity utilization can guide the formulation of production plans to improve efficiency and reduce costs, and enhance the market competitiveness of enterprises. For policy makers, changes in capacity utilization can reflect macroeconomic conditions and help formulate and adjust macroeconomic policies. For market regulators, the capacity utilization rate can be used as a regulatory tool to help monitor the effective competition in the market and the reasonable development of the industry.

To sum up, China's capacity utilization rate is an important economic indicator, which can reflect the production efficiency and economic operation status of manufacturing enterprises, and has important reference value for enterprises, policy makers and market regulators.