China's Ministry of Commerce on Tuesday released a document titled "China's Position on the So-called Excess Capacity Issue."

This document was issued to clarify relevant facts and elaborate on China's policy stance on the so-called excess capacity issue, according to the ministry.

The document said that the rapid development of China's modern industries is driven by innovation. The stable and healthy operation of Chinese industries relies on the continuous deepening of reforms.

In recent years, the international economic and trade landscape has undergone profound changes, with intensified competition among major countries, the document said. Certain countries and economies have rising concerns about their industrial competitiveness and market positions, politicizing economic and trade issues by hyping the so-called "excess capacity" problem in China, accusing Chinese production capacity of disrupting global markets, and using this as a pretext to escalate restrictive measures against China, thereby intensifying protectionism.

Engaging in protectionism only disrupts the global economic and trade order, undermines the security and stability of global industrial and supply chains, hampers the healthy and orderly development of industrial cooperation, and poses long-term risks to world economic growth, it said.

The document pointed out that there is no inherent connection between industrial subsidies and excess capacity, and that major countries should set an example by ensuring compliance with subsidy rules; large export volumes and trade surpluses do not equate to excess capacity.

China's export growth stems not only from economies of scale and improved innovation capabilities but also from the green transition and industrialization needs of various countries.

Global economic imbalance is a historical norm with complex causes, involving market factors such as savings-investment structures and the industrial and supply-chain division of labor, as well as institutional factors, including the international financial system and macro-policy interactions.

The notion that "China's insufficient domestic demand causes excess capacity" does not accord with the facts -- China is not only a manufacturing powerhouse but also a major consumer, and not only the "world factory" but also a "world market."

China's modernization of industrial development represents not "China Shock 2.0" but "China Opportunity 2.0" for the world, according to the document.

All parties should adhere to the principle of mutual benefit and win-win cooperation, promote common development, respect market rules, strengthen policy coordination, expand market openness, create cooperative opportunities, uphold multilateralism, and work together to build a more just and reasonable international economic order, jointly fostering an open and inclusive global industrial and supply chain cooperation framework, it added.