{"id":572563,"date":"2026-07-28T19:22:20","date_gmt":"2026-07-28T19:22:20","guid":{"rendered":"https:\/\/www.newsbeep.com\/ie\/572563\/"},"modified":"2026-07-28T19:22:20","modified_gmt":"2026-07-28T19:22:20","slug":"china-hits-back-at-criticism-over-excess-industrial-capacity-as-more-us-tariffs-loom","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ie\/572563\/","title":{"rendered":"China hits back at criticism over excess industrial capacity as more US tariffs loom"},"content":{"rendered":"

HONG KONG — HONG KONG (AP) \u2014 China<\/a> pushed back Tuesday against claims of overcapacity in the world\u2019s second largest economy, ahead of the release of results of a U.S. probe on the matter that could result in new tariffs.<\/p>\n

Massive capacity in a slew of Chinese industries, from automaking to solar panels, cement and steel manufacturing, among many others, has drawn increasing attention from Beijing’s trading partners in recent years. Although China’s own leaders have made rebalancing the economy a priority, slowing domestic demand has prompted companies to expand into markets overseas. Surging exports pushed China’s trade surplus to a record of nearly $1.2 trillion<\/a> last year. <\/p>\n

China has never sought a large trade surplus, the Ministry of Commerce said in a report titled \u201cChina\u2019s Position on the So-called Excess Capacity Issue.\u201d It took aim at recent talk of a \u201cChina shock 2.0\u201d due to excess capacity.<\/p>\n

\u201cThe U.S. and other western countries have come up with the so-called \u2018China shock 2.0,\u2019 falsely accusing China\u2019s industrial development of posing threats to western countries\u2019 monopoly,\u201d said the report, alluding to assertions of an earlier shock to trading partners from China’s ascent as a manufacturing power.<\/p>\n

\u201cThis is not supported by facts and totally untenable,\u201d the report said.<\/p>\n

Tuesday’s document echoed remarks by China\u2019s No. 2 official, Premier Li Qiang<\/a>, at the World Economic Forum\u2019s \u201cSummer Davos\u201d meeting in the northeastern Chinese city of Dalian. Li said that instead of a \u201cChina Shock 2.0,\u201d recent trends should be viewed as a \u201cChina Opportunity 2.0.\u201d<\/p>\n

The U.S. is expected to soon announce findings of an investigation of 16 economies, including China, relating to excess capacity and production in their manufacturing sectors. The probe is widely expected to result in increased tariffs on some countries. <\/p>\n

On Friday, the U.S. imposed higher tariffs of 10% to 12.5%<\/a> on 60 economies, including China, saying they had failed to effectively enforce a ban on goods produced with forced labor. Many countries including China protested<\/a> that move. <\/p>\n

At a press conference Tuesday, Lin Weilong, director of the Commerce Ministry’s policy research office, said the U.S. has no authority to unilaterally determine whether trading partners have excess capacity and impose restrictive measures.<\/p>\n

\u201cThe U.S. cannot narrowly define production capacity that exceeds domestic demand as excess capacity, and slap it with a surplus label,\u201d Lin told reporters in Beijing.<\/p>\n

Earlier this month, the European Union, struggling to rebalance its trade with China, implemented trade measures including protections for its steel industry and restrictions on imports of e-commerce<\/a> small parcels.<\/p>\n

China\u2019s stance on the overcapacity issue will likely \u201cfall on deaf ears,\u201d said Alfredo Montufar-Helu, an expert on China at Ankura, a consultancy.<\/p>\n

\u201cEconomic conditions in Western markets have made it politically untenable to do nothing in the face of rising Chinese imports, especially in high value added sectors that Western firms used to dominate,\u201d he said.<\/p>\n","protected":false},"excerpt":{"rendered":"HONG KONG — HONG KONG (AP) \u2014 China pushed back Tuesday against claims of overcapacity in the world\u2019s…\n","protected":false},"author":2,"featured_media":572564,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[72,14020,113,1595,14729,61,1955,60,268],"class_list":["post-572563","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economic-policy","tag-economy","tag-general-news","tag-government-policy","tag-ie","tag-international-trade","tag-ireland","tag-world-news"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/572563","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=572563"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/572563\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/572564"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=572563"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=572563"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=572563"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}