U.S. notion of "China's overcapacity" a complete fallacy

Cartoon by Tan Xiguang

Recently, some U.S. politicians have manufactured a new topic of controversy, claiming that China's overcapacity is impacting the global market.

The so-called “overcapacity” cited by some U.S. officials primarily pertains to industries such as electric vehicles, photovoltaic products and new energy. The creation of this topic by the U.S. essentially aims to politicize economic and trade issues, overstretch the concept of security, and hinder the development of relevant industries in China. It has the same pattern as the previous "China threat" theory. Moreover, it goes against the laws of economics and harms the U.S.’ own industries and the stability of the global economy.

In the context of globalization, whether or not there is overcapacity in production should be based on demand in the global market and future development potential under market economy principles. China’s leading edge in new energy was achieved through strong performance and full-on market competition. The notion that China’s overcapacity harms the global market is a complete fallacy. The U.S. side should respect the laws of the market economy and the principle of fair competition, and work together with other countries to maintain the stability of the global industrial chain.