The Ministry of Commerce of China File photo: VCG

Asked by a media reporter for comment on the Office of the US Trade Representative's announcement on Wednesday US Eastern Time of the launch of Section 301 investigations against 16 economies including China, citing so-called "excess capacity," a spokesperson for China's Ministry of Commerce (MOFCOM) said on Friday that China has noted the situation. The Section 301 investigation is a typical act of unilateralism that seriously undermines the international economic and trade order, and a World Trade Organization (WTO) panel has already ruled that the tariff measures taken based on Section 301 investigations violate WTO rules, the spokesperson said.

Regarding the US's so-called "excess capacity" claim, China has repeatedly stated its position. The global economy has long become an indivisible whole. Production and consumption are global in nature and supply and demand should be matched and adjusted from a global perspective, the MOFCOM spokesperson said, noting that if countries only produced to meet domestic market demand, there would be no cross-border trade. 

The US should not narrowly define production capacity that exceeds domestic demand as "excess capacity" and label it as so-called "overcapacity." Nor does the US have the right to unilaterally determine whether its trading partners have "excess capacity" through Section 301 investigations and impose unilateral restrictive measures, the spokesperson said.

China has also noted that the US has launched another round of Section 301 investigations against 60 economies including China, on the grounds that they have not banned the import of goods made with "forced labor," the spokesperson said, noting that China is conducting analysis and assessment over the move.

China urges the US to correct its wrong practices and return to the right track of resolving issues through dialogue and consultation, the spokesperson said, noting that China will closely follow the developments and reserves the right to take all necessary measures to firmly safeguard its legitimate rights and interests.