Market systems already have a tendency to over and under produce as well, and even when they manage to model demand appropriately, they are prone to cyclical periods of over-production due to the nature of the circulation of capital. These periods of over production have wide reaching impacts like mass unemployment and consolidation of the market under the surviving firms. When a socialist system over produces, either under a market or planned economy, it is better suited to absorb the impacts without it leading to wider crises within the system.

Currently China is being attacked by the capitalist press because when it undergoes periods of over production it is able to bounce back surprisingly well and their companies are able to maintain their position in the market as they are sustained through a localised crisis that fails to become systemic. This allows their firms to maintain market dominance in the capitalists world system, as they aren’t prone to complete collapse like firms under capitalism might be.