Beijing says countries politicize trade with overcapacity claims

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China's commerce ministry released a policy paper accusing some countries of politicizing economic and trade issues by promoting claims of Chinese overcapacity, and urged objective assessment of capacity by development stage and industry level. The paper described overcapacity as a dynamic market phenomenon, argued that industrial subsidies do not inherently cause overcapacity, and said trade surpluses are not proof of overcapacity. It called for industrial upgrading to create demand, maintaining open markets, defending World Trade Organization rules, and opposing protectionism that could disrupt global supply chains and industrial cooperation.

China said industrial subsidies do not inherently cause overcapacity.