The U.S. is using the notion of "overcapacity" to hit Chinese industries and give the U.S. itself an unfair advantage in market competition, which is another example of U.S. economic coercion and bullying, said a Chinese Foreign Ministry spokesman on Friday.
Lin Jian, the spokesman, made the statement at a regular press briefing in Beijing in response to a query about the U.S. officials espousing the idea that Chinese industry, particularly its green industry, is somehow at "overcapacity" in the arena of global trade.
"Blaming China for 'overcapacity' is not new. Years ago, the U.S. 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 U.S. exports 80 percent of its chips, especially advanced chips, and is a large exporter of pork and agricultural products. Is that 'overcapacity' according to U.S. logic?" said Lin. "In fact, the ratio of export to production for Chinese new energy vehicle is far lower than that of Germany, Japan and the Republic of Korea. This is certainly not 'dumping extra products into the global market'. 'Overcapacity' may look like an economic issue, but truth is, the U.S. is using it to hit Chinese industries and give the U.S. itself an unfair advantage in market competition. It's another example of U.S. economic coercion and bullying," said the spokesman.
"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, tech innovation and full-on market competition. A sick person doesn't get well by forcing others to take the medicine. Those who use 'overcapacity' to justify protectionism have nothing to gain and will only destabilize global industrial and supply chains, harm emerging sectors and hinder the world's climate response and green transition," he said.
The spokesman added that China urges the U.S. 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 universally beneficial and inclusive economic globalization.
U.S. hype about "overcapacity" in China blatant economic coercion, bullying: spokesman
