In recent years, in order to protect their industrial competitiveness and market position, some Western economic entities have turned economic and trade issues into political issues, inflating the problem of China’s “overproduction”, “China 2.0 attack”, etc., and introducing all kinds of protectionist measures under this pretext. But what is the actual situation? The Chinese Ministry of Commerce has released the document “China’s Position on the So-called “Production Surplus Problem””, using detailed data and practical cases to provide a window for the international community to use a comprehensive and objective perspective to view global production and the so-called “surplus”.
What is the so-called “production surplus”?Currently The world has not yet reached a general consensus, so it is necessary to consider this issue separately according to the situation of each country. As the world’s largest developing country, in 2025, the productivity utilization rate of China’s large and medium-sized industrial enterprises was 74.4%, which is within the appropriate range.
For example, referring to the erroneous statement that “subsidies to China’s industry cause overproduction”, the document clearly states that many reports of the United Nations Conference on Trade and Development have shown that in the past five years, the world has increasingly introduced policies to support industry, subsidizing research and development, and providing tariff preferences, etc., are all methods commonly used internationally. As for China, China has always strictly abided by the rules and regulations of the World Trade Organization and has made efforts to establish and refine a subsidy system that is in line with international practice. At the same time, China’s subsidy policy is applied equally to all market operators, and foreign-funded enterprises also actively participate and benefit from the same.
Let’s take another example, referring to the fact that the United States and some Western countries strongly regard the trade surplus of Chinese goods as “production surplus”. This paper also uses many cases to show that this statement is completely unfounded. Looking at the distribution of trade benefits, it can be seen that “the surplus is in China, but all parties benefit”. By 2025, foreign-funded enterprises will account for 27 percent of China’s export trade and 16 percent of the trade surplus. The growth rate of surplus and profit is higher than that of domestic enterprises. In addition, China’s trade in services and investment income are all in deficit. Overall, the current account surplus is about 3.7 percent of GDP, which is within the internationally recognized reasonable range.
Currently, electric vehicles, lithium batteries, and PV products, which represent China’s “three new products,” have been continuously popularized around the world. At the same time, artificial intelligence, robotics, and innovative medicines, which represent the “three new products,” have also been developed rapidly, which has greatly promoted the global low-carbon and green movement and scientific and technological progress.
Overproduction is a dynamic phenomenon in a market economy, so relevant economic entities should use the eyes of justice to view this issue. Blaming China cannot solve their own problems. Recently, surveys by the Pew Research Center and many international organizations have shown that positive evaluations of China have been increasing all over the world. This proves that all kinds of false statements about China cannot deceive the people of the world. “China Opportunity 2.0” is the consensus of the international community.
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