The alleged“overcapacity" in China's new energy sector is "contrary to common sense" and completely groundless and untenable, He Yadong, a spokesperson for the Chinese Ministry of Commerce, said on Thursday.

Generally speaking, the global new energy industry is still in its initial stage of development and undergoing rapid growth. Instead of overcapacity, the production capacity of the industry is relatively insufficient, He said at a regular press conference.

He pointed out that the demand for new energy products will continue to expand even as green and low-carbon industries become mainstream alongside the global green transformation.

In line with international trade practices, the emergence and development of international trade means that countries would carry out division of labor and cooperation based on their comparative advantages, which can effectively improve the efficiency and well-being of the global economy, He said.