China disputes U.S. claims of industrial overcapacity and prepares for potential new tariffs.
China has officially pushed back against claims that its industrial production exceeds global demand, a move made ahead of a U.S. investigation into the matter. The Ministry of Commerce released a report stating that the 'China shock 2.0' narrative is 'totally untenable' and not supported by facts. Premier Li Qiang suggested that instead of viewing China's manufacturing growth as a shock, trading partners should view it as a 'China Opportunity 2.0.' The report argues that the U.S. and other Western nations have falsely accused China of threatening their monopolies. Lin Weilong, director of the Commerce Ministry’s policy research office, noted that the U.S. lacks the authority to unilaterally define excess capacity and impose restrictive measures. While China argues its growth is a balanced development, Western markets are facing rising imports in high-value sectors. The U.S. is expected to soon announce findings from a probe of 16 economies, which may result in new tariffs on Chinese goods.