China's Foreign Ministry: G7 should prioritize U.S. overcapacity issue

The U.S. speculation that China's new energy industry "overcapacity," completely deviating from objective facts and economic laws, is essentially protectionism, spokesperson of China's Foreign Ministry Wang Wenbin said on Wednesday at a regular presser in Beijing. 

On Tuesday, U.S. Treasury Secretary Janet Yellen said that Chinese overproduction of green technologies would be a key topic at a forthcoming G7 finance ministers meeting. 

According to the logic of the U.S., any excessive export of goods constitutes "overcapacity," Wang asked, "Wouldn't the United States' significant exports of soybeans, aircraft, and natural gas also be considered excess capacity? Shouldn't the G7 Finance Ministers' meeting first address these excess capacities of the United States?"

China's new energy production capacity represents advanced capabilities essential for driving the global economy's green transition, not surplus capacity, Wang said.

We have repeatedly clarified that the development of China's new energy industry is the result of long-term technological accumulation and open competition among enterprises and that it is fought out in full competition rather than supplemented by industrial subsidies, aligning perfectly with the principles of market economy and fair competition, Wang said.

In the name of "overcapacity," the U.S. side coerces G7 members to build fences and set restrictions on China's new energy products, which is in fact to form a "protectionist alliance," Wang said, adding that "such action is contrary to the trend of openness and win-win situation, and will not only jeopardize the welfare of consumers in the relevant countries, but also impede and undermine the green transformation of the globe."

Emphasizing that resolving the climate crisis cannot be achieved through protectionism alone, Wang said that the U.S. cannot advocate for climate action on the one hand while asking China to take greater responsibility for addressing climate change on the other and also wield the protectionist stick to impede China's green products from benefiting the world.

China hopes that all countries will adhere to openness and cooperation, reject protectionism, strive for win-win outcomes, and avoid "lose-lose" situations, Wang said.

(Cover: China's Foreign Ministry. /CFP)