Beijing, 1 May 2024 (TDI): Spokesperson for Ministry of Foreign Affairs China, Lin Jian, on Tuesday said that the accusation of China’s overcapacity is built on a false logic and ignores more than 200 years of the basic concept of comparative advantage in Western economies.
The remarks came during the regular press briefing session of the foreign ministry when a question was quoted about US Secretary of State Antony Blinken reportedly expressing his concern to the Chinese side about China’s “industrial overcapacity”.
The spokesperson said that President Xi Jinping pointed out that China welcomes a confident, open, prosperous and thriving United States, and hopes the United States will also look at China’s development in a positive light.
Lin Jian said that China made its position clear on this issue during Blinken’s visit. The “China overcapacity” accusation may look like an economic discussion but stands on false logic.
He added that if a country should be accused of overcapacity and asked to cut capacity whenever it produces more than its domestic demand, then what would countries trade with?
Furthermore, if exporting 12 percent of Chinese-made EVs is called overcapacity, then what about Germany, Japan and the US who export 80, 50 and 25 percent respectively of their automobiles?
Wouldn’t that be considered a more serious overcapacity?
Also, according to the statistics of the International Energy Agency, to realize carbon neutrality, the world will need 45 million NEVs by 2030, 4.5 times that of the demand of 2022.
When the global capacity is still far below the market demand, how could there be “overcapacity”?
The US knows full well that this “overcapacity” allegation is against economic common sense and industry facts, yet still labels China with it.
Moreover, the US claim of “China overcapacity” is not a market-driven conclusion, but a crafted narrative to manipulate perception and politicize trade.
ALSO READ: Premier Li affirms support for foreign funded firms
Besides, the real purpose is to hold back China’s high-quality development and deprive China of its legitimate right to development. There isn’t a “China overcapacity”, but a US overcapacity of anxiety stemming from lack of confidence and smears against China.
Lastly, the spokesperson said that the US said it does not seek to contain China’s economy or bar China’s progress in science and technology.
We urge the US to honor those words, and stop spreading the false “overcapacity” narrative, stop going after China’s new energy sector with unfair and non-market means and stop impeding the global effort to achieve green transition and development.
){kind=link}