world-economy

China Disputes Overcapacity Narrative Amid Rising Trade Tensions

China has rejected Western characterizations of industrial overcapacity, defending its export surge as legitimate economic growth rather than market distortion. Beijing's pushback comes as trade frictions intensify with the United States and European Union over tariffs and market access. Chinese officials argue that expansion in sectors including new energy and advanced manufacturing reflects genuine industrial upgrading, not structural imbalances. The dispute underscores deepening disagreements over trade practices and economic competitiveness. U.S. allies including Australia and the EU have separately objected to tariff measures, citing concerns over forced labor allegations and broader protectionist measures. China's trade gaps are narrowing, even as global supply chains face renewed scrutiny and economic pressures mount.