China Daily counters claims of overcapacity, asserting they are politically motivated and misrepresent industrial realities.
China Daily has argued that accusations of 'excess capacity' against China are politically driven and misrepresent industrial realities, reports China Daily.
The Ministry of Commerce released a paper rejecting Western claims of industrial overcapacity, stating that capacity is a normal feature of global development. The article noted that industries such as railways, aviation, and semiconductors often expand ahead of demand.
The paper emphasized that treating domestic demand as the sole measure of capacity ignores the logic of international trade. Export production has long been accepted in advanced economies, and China's goods, such as solar panels, batteries, and electric vehicles, meet genuine global needs.
Trade surpluses, the article added, reflect savings, investment, and consumer patterns, not unfair practices. Restricting Chinese exports risks raising costs and slowing technological progress.
China Daily stressed that there is no legal basis in trade law to declare another country's productive capacity unlawful. It warned that vague accusations blur the line between lawful defense and protectionism.
The article argued that subsidies and industrial policy exist in many economies, and disputes should be resolved through multilateral mechanisms. It stated that China's competitiveness stems from decades of investment in education, infrastructure, and domestic competition.
Slower household demand should not be seen as the sole driver of exports, as China is investing in clean energy, transport, and digital infrastructure. The paper warned that labeling competitiveness as distortion undermines fair competition.
For developing countries, China's manufacturing capacity offers affordable equipment and technology. Restricting such goods would raise prices and slow development. The article concluded that efficient production should be governed by consistent trade rules, not political rhetoric.