Responding to the massive hype surrounding the so-called "China's excess capacity" narrative in Western circles, officials and experts said that it only politicizes trade, deflects attention from structural economic problems at home and acts as a cover for protectionist measures.
They said that China's modern industrial development represents "China Opportunity 2.0" for the global economy, not "China Shock 2.0", and warned that such negative narratives can distort global trade, destabilize industrial and supply chains and hinder long-term growth worldwide.
Their comments came after the Ministry of Commerce released a document on Tuesday titled "China's Position on the So-called Excess Capacity Issue", which called for "a comprehensive, objective and fair view" of capacity issues, and for differences to be managed through open and mutually beneficial cooperation.
Noting that "excess capacity" is a dynamic feature of a market economy and that capacity supply and demand are never in lasting balance, the document said that shifts in the global capacity landscape reflect international industrial specialization and cooperation.
Detailing the document, Yan Dong, vice-minister of commerce, said at a news conference in Beijing that some economies, concerned about their industrial competitiveness and market position amid sluggish global growth, have repeatedly invoked the so-called "excess capacity" line to justify protectionist measures.
