Beijing Pushes Back on Overcapacity Claims as Trade Frictions Rise

China’s Ministry of Commerce issued a broad position paper on Tuesday rejecting international claims of industrial overcapacity, arguing that production imbalances reflect market dynamics rather than state subsidies or trade surpluses.

The forceful defense comes as major economies increasingly cite a "China Shock 2.0" of heavily subsidized exports as justification for erecting new trade barriers against Chinese goods.