Ministry of Commerce of the People's Republic of China: There is no so-called "overcapacity" in the new energy industry

In response to the comments made by EU leaders regarding "overcapacity" related to China, the spokesperson for the Ministry of Commerce, He (Kouyong), stated at a press conference that measuring whether there is overcapacity cannot be solely based on production and export volumes. From a global perspective and in the medium to long term, there is no so-called overcapacity in the mainland's new energy industry; instead, there is a capacity gap, and the accusations from the EU side are unfounded. Furthermore, China has been promoting the transformation and upgrading of traditional industries according to market economic laws, and green products have not only not impacted the EU market but have also aided the EU's green transition, benefiting EU industries and consumers. Therefore, it is not the mainland that has overcapacity; it is likely the EU side's excessive anxiety caused by long-term insufficient R&D investment and declining industrial competitiveness.

He (Kouyong) emphasized that he hopes the EU side will view the economic and trade relations between both parties without emotions and biases, reduce accusations, increase communication, decrease protectionism, promote openness, lessen anxiety, and take more action, and consult more on matters while avoiding labeling. China is willing to work with the EU to mutually expand bilateral market access, strengthen dialogue on government procurement and export controls, deepen cooperation in supply chains, promote WTO reform, and support discussions on industrial subsidy policies within the WTO, injecting more stability, certainty, and positive energy into building an open world economy