The Ministry of Commerce of China File photo: VCG

China believes that using multilateral mechanisms such as the G20 to hype up claims of so-called economic imbalances and overcapacity is, in essence, an attempt to promote protectionism and find excuses to exert pressure on and impose restrictions against China, Huang Ling, a spokesperson of China's Ministry of Commerce (MOFCOM), said on Thursday, noting that China firmly opposes such moves, which will only disrupt the global economic and trade order and undermine the healthy development of the global economy.

The remarks were made in response to a media inquiry regarding recent comments by US Treasury Secretary Scott Bessent that the current flood of exports from China was unsustainable, even though the US direct trade position with China was "rapidly improving," and that he would encourage G20 members to re-examine terms of trade with China to shrink global imbalances and press Beijing to rebalance its economy away from exports and toward domestic consumption.

The inquiry also cited media reports saying that a US Treasury official had called on G20 economies to avoid policies that push excess production and excess capacity into global markets.

Huang said that the development of international trade is the result of global division of labor and cooperation, and is mutually beneficial in nature. The growth of China's exports stems both from economies of scale and enhanced innovation capacity, as well as demand arising from countries' green transition and industrialization, the spokesperson said, noting that the continued development of China's foreign trade benefits all parties. China has repeatedly made its position clear on claims of so-called trade imbalances and overcapacity involving China.

As China pointed out in its previously released position paper on the so-called issue of "overcapacity," global economic imbalances have complex causes. Linking global imbalances to overcapacity and attributing them to simplistic causes is a deliberate attempt to confuse the issue and serves ulterior motives, said Huang.

The MOFCOM spokesperson reiterated that capacity-related issues are a normal phenomenon that arises in the course of global economic development alongside industrial upgrading, market fluctuations and changes in the division of labor. Such issues should be viewed comprehensively, objectively and fairly in accordance with economic principles, she said.

Countries should uphold multilateralism, strengthen policy communication and coordination, expand openness and cooperation, jointly safeguard stable and smooth global industrial and supply chains, and promote mutually beneficial and win-win outcomes, said the spokesperson.

Global Times