BEIJING: At the meeting of the World Trade Organization’s Committee on Subsidies and Countervailing Measures on Tuesday, the Chinese representatives firmly rejected baseless accusations by the US and certain other members regarding “overcapacity,” condemning the US “reciprocal tariffs” and discriminatory subsidy policies for severely undermining WTO rules, calling on all members to unite against unilateralism and protectionism, and uphold the WTO-centered multilateral trading system, the CCTV reported on Thursday.
Chinese side emphasized that no universal standard or methodology exists for defining “overcapacity,” as supply-demand imbalances are a normal aspect of economies. In the era of globalization, a country’s production capacity caters to both domestic and international markets based on comparative advantages and market competition. Chips, airplanes, soybeans of the US, and vehicles of Germany and Japan are all exported in large quantities.
The narrative of “overcapacity” hyped by the US and some members contradicts market principles and globalization logic, aiming to creating anxiety, discredit China, and justify protectionist measures driven by worries over losing competitiveness and market share of their own.
Chinese representatives highlighted that the competitiveness of Chinese industries and products stems from continuous technological innovation and coordinated development, not subsidies. China places significant importance to trade policy compliance, ensures consistency with WTO rules, fulfills transparency obligations, and firmly safeguards the multilateral trading system.
Chinese side noted that the US “reciprocal tariffs” disrupt global trade and undermine the interests of developing members, while China acts as a stabilizing force for global trade growth and firmly stands on the side of developing members. The fundamental reason behind the US’ repeated smearing of China on production capacity issues and portraying China as a “threat” lies in its insistence to the “zero-sum game” and “America First” mentalities, as it only cares about its own interests and rejects the possibility of win-win outcomes through economic and trade cooperation.
During discussions on US discriminatory subsidy policies of the Committee, China sternly criticized the US’ discriminatory subsidies such as those in the CHIPS and Science Act, as well as the “reciprocal tariffs,” for distorting the market, exhibiting double standards, and undermining WTO rules. China pointed out that the US actions contravene law of market economy and severely disrupt the normal order of international trade and investment. China called on members to strengthen cooperation, oppose the US unilateral and bullying practices, and jointly safeguard the rules-based multilateral trading system.
