China's Ministry of Commerce on July 28 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 it has never been China's intention to seek a trade surplus. China's export growth is due to enhanced economies of scale and innovation capacity and the needs of countries for green transition and industrial development.

China's current account surplus stood at 3.7% of GDP in 2025, a level described as modest by global standards and within internationally recognized ranges.

The document also noted that China runs deficits in services and investment returns. These deficits offset part of the goods trade surplus, keeping the overall current account relatively balanced.