China strongly denied the Western allegations
Agency. The Ministry of Foreign Affairs of China has refuted the claims of Western media and politicians that “China is operating at excess capacity”. He also called it a false story saying that such commentary is having a negative impact on the world.
Responding to the “overcapacity” issue raised by the West, Chinese Foreign Ministry spokesman Lin Jian said at a regular press conference on Wednesday, “It is wrong to say that Chinese overcapacity is causing a shock to the global market.”
Lin warned that efforts to erect more trade protectionist barriers under the guise of a flawed narrative of China’s “overcapacity” will not strengthen anyone’s industry. Rather, it will hinder the smooth and stable operation of global supply chains. And, will serve to hinder the global green transition.
The Global Times published the news that Lin has repeatedly emphasized that China should deal with the problems of production capacity according to the principles of market economy.
“When viewed from the perspective of economic globalization and analyzed from the perspective of the global division of labor, the competitiveness of China’s new energy industry is not obtained from government subsidies, but from real skills and full market competition,” Lin said. .
Chinese officials have recently responded to some American and European politicians’ accusations of “overcapacity” in China’s electric vehicle (EV) industry. China has been emphasizing the importance of market adjustment for its products.
Jin Xiangdong, an official at the National Development and Reform Commission, China’s top economic planning agency, said at a separate press conference on Wednesday that a moderate surplus of output relative to demand is conducive to market competition and natural selection, and that this phenomenon is very common. In the context of attempts to link production capacity issues with international trade and the claims and allegations that growth in exported goods indicates “overcapacity” are not valid.