The Ministry of Commerce of China File photo: VCG

If a trade surplus alone is enough to warrant the label of "overcapacity," then aren't the automobiles, pharmaceuticals, wine, and cosmetics exported by the EU also suffering from "overcapacity"? China's Ministry of Commerce spokesperson He Yadong asked during a press conference on Thursday.

He made the remarks when asked to comment on recent media reports claiming that the European Commission is rushing to formulate a new trade instrument to address China's so-called "overcapacity" issue.

The spokesperson said that regarding the so-called "overcapacity" issue, the Chinese side has previously elaborated its position on multiple occasions. In the broader context of globalization, we should respect economic laws and market principles, and view the issue objectively, comprehensively, and from a long-term perspective.

Noting that relevant countries are investigating the EU's own "overcapacity" issues, the spokesperson said that under such circumstances, the EU has even less reason to apply double standards. 

The Chinese side believes that if the EU fabricates a new trade tool targeting China under the pretext of "overcapacity," it is essentially an attempt to cover up its own industrial difficulties and to smear and suppress external competition. This move will not only damage China-EU economic and trade relations, but also disrupt the stability of global production and supply chains, and will ultimately backfire on Europe's own industrial development. The EU shall bear full responsibility for this, the spokesperson noted.

The Chinese side has consistently advocated that China and the EU should resolve differences through cooperation and consultation. China will not initiate trouble, but if China's national interests and the legitimate rights and interests of its enterprises are harmed, we will not sit idly by, He said, urging the EU to face reality, return to the correct track of dialogue and consultation, and take actions that genuinely benefit the development of China-EU economic and trade relations.

"If the EU insists on pushing forward the so-called new tool and adopts discriminatory restrictive measures against Chinese enterprises or products, China will firmly take countermeasures," the spokesperson noted.

Global Times