'Overcapacity' accusation against China rooted in protectionism: former WTO chief negotiator

China

'Overcapacity' accusation against China rooted in protectionism: former WTO chief negotiator

2024-04-28 16:29 Last Updated At：04-29 03:37

Mounting rhetoric regarding China's global competitiveness in sectors like new energy vehicles is rooted in the protectionist attitude of U.S. and EU officials and media, said Long Yongtu, China's former chief negotiator for entry into the World Trade Organization (WTO).

In recent months, high-level officials from Western countries have renewed accusations of "overcapacity" against China in these emerging manufacturing fields. According to Long, the term seems to target any area of production where China excels.

"I believe that we should have a good understanding of what is overcapacity, what do they mean by overcapacity. It seems to me that they always say that if in certain areas or certain sectors of industry, if Chinese are very competitive, if the Chinese enterprise and the products are competitive, they will say these sectors, these areas are [at] 'overcapacity,' so you are dumping your products all over the world," said Long, speaking in an interview with China Global Television Network (CGTN).

The renowned international economist stressed that widening use of the term appears to lack inherent consistency.

"In those areas where they have comparative advantage and competitiveness, they never say overcapacity. When their products come into China, they never say the reason is their overcapacity. I think the problem is still rooted in protectionism. If they find some areas, some countries are more competitive than them, they always take the pretext of overcapacity, trying to resolve this kind of so-called 'overcapacity' issues," Long said.

"They have to know Chinese products going to the international market is a behavior of business logic. They are not based on any protectionist idea. So, I think we should all have a good understanding of what is meant by overcapacity," he added.

Cambodia welcomes more Chinese investment in new energy industry

2024-05-12 22:10 Last Updated At：22:37

China-Cambodia ties received a boost from Chinese investments in Cambodia's nascent new energy industry on Thursday, as the Cambodian Confederation of Investors Association hosted an event in the capital city of Phnom Penh to welcome these new investments.

The association is expected to better coordinate among ministries and enterprises to start this fresh phase of new energy investment.

Addressing delegates at the ceremony, Cambodian Prime Minister Hun Manet emphasized his government's strong focus on foreign investments in Cambodia, especially in the private sector.

He said Cambodia and China are engaged in close economic cooperation and promised that the Cambodian government will try its best to create a better business environment and solve problems. In recent years, several Chinese companies in the new energy technology and electric vehicle (EV) sector – including the Huaneng Group, Great Wall, BYD and Midea – have started building infrastructure in Cambodia.

"China-Cambodia trade relations have prospered in recent years. We've chosen to invest in new energy projects in Cambodia, including factories and charging equipment. We believe the investments in industries in Cambodia will further improve China-Cambodia friendship," said He Dong, president of ZM Trucks China.

For Cambodia, Chinese investment in electric vehicles and renewable energy plants offers an opportunity to benefit from technology transfers and industrial upgrading.

It would also help Cambodian businesses, create employment opportunities and improve people's living conditions.

"We welcome the investment very much because it helps Cambodia's economic development. It creates more job opportunities for Cambodians and is also good for the environment," said Kun Thai, general chairman of Cambodia Confederation of Investors Association.

The association is working actively with the Chinese new energy sector – to get more companies into Cambodia, and a wave of investment that will usher in positive changes.