If a trade surplus alone is enough to warrant the label of overcapacity, then aren't the automobiles, pharmaceuticals, wine, and cosmetics exported by the EU also suffering from overcapacity, China's Ministry of Commerce Spokesperson He Yadong asked rhetorically during a press conference. He made the remarks when asked to comment on recent media reports claiming that the European Commission is rushing to formulate a new trade instrument to address China's so-called “overcapacity” issue. He said that “in the broader context of globalization, we should respect economic laws and market principles, and view the issue objectively, comprehensively, and from a long-term perspective”. If the EU fabricates a new trade tool targeting China under the pretext of "overcapacity," it is essentially an attempt to cover up its own industrial difficulties and to smear and suppress external competition. This move will not only damage China-EU economic and trade relations, but also disrupt the stability of global production and supply chains, and it will ultimately backfire on the EU's own industrial development. The EU shall bear full responsibility for this, the Spokesperson noted.
The Chinese side has consistently advocated that China and the EU should resolve differences through cooperation and consultation. China will not initiate trouble, but if China's national interests and the legitimate rights and interests of its enterprises are harmed, it will not sit idly by, He said, urging the EU to face reality, return to the correct track of dialogue and consultation, and take actions that genuinely benefit the development of China-EU economic and trade relations. “If the EU insists on pushing forward the so-called new tool and adopts discriminatory restrictive measures against Chinese enterprises or products, China will firmly take countermeasures,” Spokesperson He Yadong noted.
Recently, the EU has taken a series of trade protection measures, including cross-border investigative practices targeting Chinese entities in its probe into Nuctech, the Industrial Acceleration Act, as well as the proposed revision of the Cybersecurity Act. Jian Junbo, Director of the Center for China-Europe Relations at Fudan University's Institute of International Studies, told the Global Times that with the continuous development of the economies and industrial structures of both sides, it is normal for China and the EU to have competition in certain fields, but protectionism does not enhance competitiveness, and will harm others without benefiting itself. China has a full policy tool kit to counter EU protectionist measures and will use it when necessary. For instance, China could also launch investigations into the impact of foreign subsidies in response to the EU's Foreign Subsidies Regulation, the Global Times reports.
