HONG KONG (AP) — China pushed back Tuesday against claims of overcapacity in the world’s second largest economy, ahead of the release of results of a U.S. probe on the matter that could result in new tariffs.Massive capacity in a slew of Chinese industries, from automaking to solar panels, cement and steel manufacturing, among many others, has drawn increasing attention from Beijing’s trading partners in recent years. Although China’s own leaders have made rebalancing the economy a priority, slowing domestic demand has prompted companies to expand into markets overseas. Surging exports pushed China’s trade surplus to a record of nearly $1.2 trillion last year. China has never sought a large trade surplus, the Ministry of Commerce said in a report titled “China’s Position on the So-called Excess Capacity Issue.” It took aim at recent talk of a “China shock 2.0” due to excess capacity.
“The U.S. and other western countries have come up with the so-called ‘China shock 2.0,’ falsely accusing China’s industrial development of posing threats to western countries’ monopoly,” said the report, alluding to assertions of an earlier shock to trading partners from China’s ascent as a manufacturing power.“This is not supported by facts and totally untenable,” the report said.
