China Outlines Stance on Global 'Overcapacity' Concerns
On July 28, China's Ministry of Commerce released a document titled "China's Position on the So-Called 'Overcapacity' Issue." This paper aims to clarify factual information and articulate China's policy stance regarding global concerns about industrial overcapacity. The document is structured into four main chapters, preceded by an introduction and followed by a conclusion. These chapters cover a comprehensive and objective view of global capacity and the concept of 'overcapacity,' China's perspective on four key relationships concerning overcapacity, China's commitment to building a modernized industrial system through open cooperation, and joint efforts to foster an open and inclusive global supply chain cooperation framework. The paper emphasizes that China consistently advocates for a comprehensive, objective, and fair approach when assessing capacity issues. It stresses the importance of historical and dialectical perspectives, along with a commitment to open cooperation and mutual benefit to resolve conflicts and differences. The Ministry warns that protectionism will disrupt the global economic and trade order, undermine the security and stability of global supply chains, hinder healthy industrial cooperation, and pose long-term risks to global economic growth.
This document represents China's official response to international criticism regarding industrial overcapacity, particularly in sectors like renewable energy and manufacturing. By framing the issue as a matter of objective analysis and mutual benefit, China seeks to counter narratives that attribute global economic imbalances solely to its production levels. The emphasis on open cooperation and warning against protectionism suggests a strategy to maintain market access and global trade integration, while simultaneously asserting its right to industrial development. The underlying dynamic likely involves balancing domestic industrial policy objectives with the need to navigate international trade relations and avoid retaliatory measures, particularly from major trading partners concerned about market distortion and unfair competition.
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