Some Western countries have lately been accusing China of "overcapacity," which is baseless hype and China firmly rejects it, a Foreign Ministry spokesperson said on Wednesday.

The G7 Foreign Ministers' Meeting issued a communique recently, claiming that China's non-market policies and practices are leading to "overcapacity."

When asked to comment on the communique, spokesperson Wang Wenbin said at a daily press briefing that China's new energy sector capacity is advanced and much-needed capacity for green development, not "overcapacity." China's green technology and products, especially the growth of new energy industry, meet countries' need to address the energy crisis and respond to climate change and will make an important contribution to the global green and low-carbon transition.

The rapid growth of China's new energy industry is determined by the laws of economics and market factors, not subsidies, Wang said, noting that China's new energy products are competitive because they started out early and have kept investing in its R&D. Hence a leading edge in technology. Combined with China's vast range of supporting industries, mega-size markets and rich human resources, that leading edge becomes integrated competitiveness.

He pointed out that accusing China's new energy industry of overcapacity is a sign of protectionism.

According to Bloomberg analysis, in the EV sector, the capacity usage rates of the majority of China's leading auto exporters are considered normal; the ratio of exports to production is far lower than other car producing nations such as Germany, Japan and the Republic of Korea; and Chinese companies aren't dumping EVs on global markets, for the export prices of those cars reflect the laws of the market, Wang said.

The "overcapacity" rhetoric is just an excuse for protectionism. The spokesperson said that limiting the export of China's new energy products, such as electric vehicles, will make everybody lose.

"China stands by its basic national policy of opening up. We are ready to work with all parties to uphold fair competition and benefit from cooperation together," Wang said, also expressing hope that relevant countries will stay open, observe the principles of market economy and international trade rules, and provide a fair, transparent, open and non-discriminatory environment for Chinese businesses.