China Rejects Overcapacity Claims as $1.2 Trillion Trade Surplus Draws Looming US Tariffs
Updated
Updated · abcnews.com · Jul 28
China Rejects Overcapacity Claims as $1.2 Trillion Trade Surplus Draws Looming US Tariffs
3 articles · Updated · abcnews.com · Jul 28
Summary
China on Tuesday formally rejected accusations that its manufacturers have excessive capacity, issuing a Commerce Ministry report and warning Washington against using the claim to justify new trade barriers.
Nearly $1.2 trillion in trade surplus last year has intensified scrutiny as weak domestic demand pushes Chinese firms to sell more autos, solar panels, steel and other goods overseas.
The U.S. is expected to soon release findings from an excess-capacity probe covering 16 economies, a review widely seen as paving the way for additional tariffs on some countries including China.
Friday’s separate U.S. tariffs of 10% to 12.5% on 60 economies over forced-labor enforcement already added pressure, while the EU earlier this month tightened steel protections and curbed some small-parcel imports from China.
Beijing argues capacity should not be judged against domestic demand alone, but analysts say Western governments face growing political pressure to respond to rising Chinese imports in higher-value industries.