May 16 2024: China criticized U.S. and European claims of industrial overcapacity on Thursday, branding them as “naked trade protectionism” and warning that such constraints on new energy exports from China would hinder global climate change efforts.
The growing concern over Chinese industrial overcapacity flooding the European Union with cheap products has intensified the ongoing trade war between the West and Beijing, which began with the imposition of U.S. import tariffs in 2018.
“A country cannot be labelled as having excess capacity just because it has more capacity than it needs,” stated He Yadong, a spokesperson for the Commerce Ministry. “Production and consumption are global, and supply and demand need to match and be adjusted according to a global perspective.”
On Tuesday, the Biden administration announced significant tariff increases on $18 billion worth of exports, including a quadrupling of tariffs on Chinese new energy vehicles.
He Yadong emphasized that the demand for new energy products will continue to grow amid the global green transformation, likening China’s dominance in green technologies to Boeing and Airbus’ stronghold in the global aviation market. He argued that increasing global sales of new energy vehicles (NEVs) is essential for achieving carbon neutrality by 2030.
“The countries concerned are worried about their competitiveness and market share,” He added. “Overcapacity is not a product, it is an anxiety.”
