China's Ministry of Commerce recently published a document titled The Chinese Side's Position on the Issue of So-Called Excess Capacity. In it, it responds to accusations that China is creating excessive production capacity, describing these claims as unfounded.
According to a survey conducted among internet users worldwide by China Global Television Network (CGTN), 81.7 percent of respondents reject the idea that certain countries should unilaterally define what constitutes "excess production capacity" for geopolitical or protectionist reasons and then impose this definition on other states. Respondents also criticized the politicization of economic and trade issues and the misuse of security arguments.
The document states that claims of alleged excess capacity contradict basic economic principles and cannot conceal the decline in industrial competitiveness in certain countries.
In the survey, 87 percent of respondents stated that the balance between supply and demand in a market economy is only relative, while a certain degree of imbalance is a normal phenomenon. In their view, consistently balanced utilization of production capacity does not exist in practice.
A further 84.7 percent of respondents believe that an appropriate level of production capacity utilization differs across individual economies. Therefore, in their opinion, a single globally valid standard by which alleged excess capacity could be assessed cannot be established.
A total of 76 percent of respondents stated that a trade surplus is the result of the global division of labor and differences in supply and demand structures. As such, it does not in itself constitute evidence of excessive production capacity.
The survey also showed that 81 percent of respondents consider protectionist trade measures to be an obstacle to global economic growth. According to respondents, these measures distort normal trade relations, undermine the international trade order, and complicate the efficient allocation of production capacity in the world economy.
gnews.cz/CMG
