China's Ministry of Commerce on Tuesday published a document titled China's Position on the So-Called Issue of Overcapacity, systematically rejecting what it described as unfounded accusations regarding alleged Chinese "overcapacity".
According to a CGTN survey of internet users from around the world, 81.7 percent of respondents reject efforts by some countries to broadly apply the label of "overcapacity" for geopolitical or protectionist reasons and to impose these claims on others. Survey participants criticized the politicization of economic and trade issues as well as the overly broad application of national security arguments.
The claim of so-called "overcapacity" contradicts basic economic principles, according to the article, and cannot conceal the declining competitiveness of certain industries.
A total of 87 percent of respondents stated that in a market economy, the balance between supply and demand is only relative, while imbalance represents a normal state. There is therefore no permanently optimal level of production capacity.
Another 84.7 percent of survey participants believe that an appropriate rate of capacity utilization differs across economies and that no single universal global standard can be established for assessing it.
The concept of "overcapacity" is being misused, according to the survey
In recent years, the economic concept of "overcapacity" has been increasingly generalized and used in inappropriate contexts.
Some countries, according to the article, have stopped assessing industrial development based on changes in market supply and demand. Instead, they attribute competitive pressures on their domestic companies, trade deficits, or even changes in industrial policy to so-called "Chinese overcapacity" and use this claim as a pretext for introducing trade barriers.
According to the survey, 76 percent of respondents believe that trade surpluses are the result of the combined effect of the global division of labor and the structure of supply and demand, and not evidence of excess production capacity.
A total of 81 percent of respondents stated that various protectionist measures weaken global economic growth, seriously disrupt normal trade flows and the global trading order, and hinder the rational relocation and distribution of production capacity worldwide.
Industrial subsidies are a common part of economic policy
Several reports from the United Nations Conference on Trade and Development have noted that the number of industrial policies introduced by individual states has increased significantly over the past five years.
Providing subsidies for research and development, tax relief, and low-interest loans to emerging industries has become widely accepted international practice.
China, according to the article, has long adhered to the rules of the World Trade Organization and continues to build and refine an industrial support system consistent with international norms.
Subsidies, according to China's position, are increasingly directed toward technological innovation, green development, and the public interest, rather than toward distorting competition.
A total of 80.6 percent of respondents stated that an appropriate industrial subsidy policy can help correct market failures, promote technological innovation, protect the environment, reduce poverty, and contribute to balanced development.
At the same time, 84.5 percent of respondents believe that the industrial policies of major economies have significant cross-border and demonstration effects. These economies should therefore set an example in rejecting subsidy abuse and discriminatory subsidy measures.
Another 81.5 percent of respondents stated that World Trade Organization members generally call for fair, universal, and transparent conditions for granting subsidies. Major economies should, in their view, lead by example and ensure their subsidy policies comply with the rules.
The survey was conducted on CGTN's English, Spanish, French, Arabic, and Russian platforms. Within 24 hours, 3,703 internet users participated, expressing their views through voting.
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