Energy Insider: China’s Commerce Ministry Rebuts Overcapacity Claims

Commerce ministry rebuts overcapacity claims

China’s Ministry of Commerce issued a broad position paper on July 28 rejecting international claims of industrial overcapacity, arguing that production imbalances reflect market dynamics rather than state subsidies or trade surpluses. The pushback 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. The paper, titled China’s Position on the So-Called Overcapacity Issue, urged governments to assess capacity disputes objectively through the lens of economics and to favor cooperation over confrontation.