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FM spokesperson: US 'overcapacity' narrative aims to hit Chinese industries

Xinhua | April 20, 2024

The U.S. "overcapacity" narrative aims to hit Chinese industries, which is another example of U.S. economic coercion and bullying, a Chinese foreign ministry spokesperson said on Friday.

Spokesperson Lin Jian made the remarks when asked to comment on China's "overcapacity" issue hyped up by the United States recently.

Blaming China for "overcapacity" is not new, Lin noted at a regular news briefing, saying that years ago, the United States accused China of "overcapacity" for exporting many high-quality, low-cost products.

Now it is sticking the label of "overcapacity" to China's export of new energy products. "The United States exports 80 percent of its chips, especially advanced chips, and it is a large exporter of pork and agricultural products. Is that 'overcapacity' according to U.S. logic?" Lin added.

In fact, the ratio of export to production for Chinese new energy vehicles is far lower than that of Germany, Japan and Republic of Korea. This is certainly not "dumping extra products into the global market," he said.

Lin said that "overcapacity" may look like an economic issue, but truth is, the United States is using it to hit Chinese industries and give the United States itself an unfair advantage in market competition. It's another example of U.S. economic coercion and bullying.

He noted that in today's world, supply and demand are both global, and the capacity of each country is determined by comparative advantage. This must be seen from an objective, dialectical and rational perspective based on the laws of economics.

China's leading edge in new energy is gained through strong performance, technological innovation and full-on market competition, he added.

"A sick person doesn't get well by forcing others to take the medicine," said Lin, adding that those who use "overcapacity" to justify protectionism have nothing to gain, but will only destabilize global industrial and supply chains, harm emerging sectors and hinder global climate response and green transition.

"We urge the United States to abandon the hegemonic mindset, keep an open mind, play fair, observe market economy principles and international trade rules, provide a truly world-class, market-oriented and law-based environment for trade and economic cooperation, and work with the rest of the world to advance inclusive economic globalization that benefits all," said the spokesperson.