The authorities' task now is to determine how to support continued growth on the better performing track (the private sector and the first- and second-tier cities), while eliminating overcapacity and boosting productivity on the weaker track (SOEs and third- and fourth-tier cities). To succeed, they must address the fallout of the previous approach, which, by providing more money and preferential policies to the lagging track, ended up fueling overcapacity and unsustainable local debts.