Lin Weilong, director of the Policy Research Office of China's Ministry of Commerce, at a press conference on China's position regarding the so-called "overcapacity" issue on July 28, 2026. Photo: VCG

An official from China's Ministry of Commerce (MOFCOM) on Tuesday rejected a US Section 301 investigation into the so-called "overcapacity" issue, saying on Tuesday that the move was a typical act of unilateralism that seriously undermines the international economic order.

Lin Weilong, director of the Policy Research Office of the MOFCOM, made the remarks at a press conference, saying that the US should not narrowly define production capacity exceeding domestic demand as "overcapacity" or label it as such.

US Trade Representative Jamieson Greer said that the US government was continuing to work on another broad tariff investigation under Section 301 of the Trade Act of 1974, targeting excess industrial capacity into 16 key trading partners, including China, Vietnam, Mexico and the European ⁠Union, Reuters reported on Tuesday.

"The US has no right to unilaterally determine whether its trading partners have 'overcapacity' through a Section 301 investigation, or take unilateral restrictive measures," Lin said.

The Chinese side urged the US to correct its erroneous approach and return to the right track of resolving differences through dialogue and consultation, Lin noted.

China will closely monitor developments and reserves the right to take necessary measures to firmly safeguard its legitimate rights and interests, Lin added.

Global Times