John Quelch: Chinese 'overcapacity' is a gift to the world

People's Daily Online has launched "Understand China," a new program that focuses on the 15th Five-Year Plan (2026-2030). In this episode of "Understand China," Professor Gong Jiong from the University of International Business and Economics engages in a dialogue with John Quelch, executive vice chancellor of Duke Kunshan University and recipient of the 2012 Shanghai Magnolia Silver Award.

Together, the two scholars responded to misconceptions in international discourse regarding China's so-called "overcapacity."

Gong pointed out that whether China faces so-called "overcapacity" should ultimately be judged by the global market. Taking the automobile industry as an example, he argued that "Europe can't just fence off the market and fence off imports to protect the market."

Quelch stated: "What may appear to be domestic overcapacity in EVs is actually appropriate capacity for the markets of the world. So in a way, Chinese 'overcapacity' is a gift to the world."

Intern Ai Zixuan contributed to this story.