CGTN Poll: 81.7% oppose politicizing economic and trade issues under the pretext of 'excess capacity'

China's Ministry of Commerce released China's Position on the So-called Excess Capacity Issue on Tuesday, systematically refuted the unfounded allegations about China's so-called "excess capacity." 

According to a CGTN survey of global internet users, 81.7% of respondents oppose attempts by certain countries to broadly apply the label of "excess capacity" for geopolitical or protectionist purposes and impose such claims on others. They criticized the politicization of economic and trade issues and the tendency to overextend national security concerns.

The narrative of so-called "excess capacity" runs counter to basic economic principles, and such an argument cannot mask the decline in the competitiveness of certain industries. According to the survey, 87% of respondents said that in a market economy, supply-demand equilibrium is relative, while disequilibrium is the norm, meaning there is no permanently optimal level of production capacity. Additionally, 84.7% of respondents believe that reasonable capacity utilization ranges vary across economies, and that there is no one-size-fits-all global standard for judgment.

In recent years, the economic concept of "excess capacity" has been increasingly generalized and misapplied. Some countries have moved away from assessing industrial development based on changes in market supply and demand, instead attributing their domestic companies' competitive pressures, trade deficits, and even industrial policy adjustments to the so-called "China's excess capacity," and using this as a pretext to impose trade barriers.

According to the survey, 76% of respondents said that trade surpluses are the result of the combined effects of global industrial division of labor and supply-demand structures, rather than an indication of excess capacity. Meanwhile, 81% of respondents believe that various protectionist measures undermine global economic growth, severely disrupt normal trade flows and the global trading order, and hinder the rational flow and allocation of production capacity worldwide.

Several UN Trade and Development (UNCTAD) reports point to the rapid increase in industrial policies worldwide over the past five years. Providing R&D subsidies, tax incentives and low-interest loans for emerging industries has become a widely accepted international practice. China has consistently adhered to WTO rules and continued to establish and improve an industrial support system in line with international practices, ensuring that subsidies are increasingly directed toward technological innovation, green development and the public interest, rather than undermining market competition.

In response, 80.6% of respondents said that reasonable industrial subsidy policies can help correct market failures, advance technology innovation, protect the environment, reduce poverty, and promote balanced development. 

Still, 84.5% of respondents believe that the industrial policies of major economies have significant spillover and demonstration effects, and that these economies should take the lead in opposing the abuse of subsidies and discriminatory subsidy policies. Another 81.5% of respondents said that WTO members generally seek fair, universal, and transparent subsidy practices, and that major economies should set an example by ensuring subsidy compliance.

The survey was conducted across CGTN's English, Spanish, French, Arabic, and Russian platforms, with 3,703 netizens participating in the poll and sharing their views within 24 hours.