The West’s narrative of Chinese “overcapacity” is a double standard, said a former chief economist of the World Bank as he urged advanced economies to draw on “Eastern wisdom” rather than protectionism to navigate the rise of hi-tech competition.
Justin Lin Yifu, a prominent advocate of Beijing’s industrial policy, dismissed claims that China’s auto-export surge was a sign of industrial imbalance. Speaking at Hong Kong Chu Hai College, Lin drew a contrast with Germany to expose a logical inconsistency in the current Western rhetoric.
“[Western countries] say China became the world’s largest car exporter because of overcapacity, but if we look at which country has the highest share of auto exports – it is Germany,” Lin said during a question and answer session following his keynote speech at the college on Friday.
He noted that Germany exports about 4 million vehicles a year, accounting for roughly 80 per cent of its total production. In contrast, he said, China exports around 7 million vehicles, representing about 20 per cent of its output, with the rest absorbed domestically.
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