China has rejected Western claims that it has excess industrial capacity, defending its manufacturing policies ahead of a U.S. trade investigation that could lead to new tariffs on imports from 16 economies, including China.
According to the report, Beijing argued that accusations of overcapacity are unfounded and should not be used to justify additional trade restrictions.
The report said China's Commerce Ministry maintained that the country has never pursued a large trade surplus as a policy objective and dismissed claims of a so-called "China shock 2.0" as unsupported by evidence.
According to the report, the latest statement comes as trade tensions between China and Western economies continue to intensify over manufacturing exports and market competition.
While Beijing has strongly defended its position, analysts believe the response is unlikely to alter Western policies, with governments facing increasing political pressure to address the impact of rising Chinese imports on domestic industries.
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China rejects 'overcapacity' claims in sweeping rebuttal against US, EU https://t.co/dLsiAqlvm1
— Nikkei Asia (@NikkeiAsia) July 28, 2026
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