China Refutes ‘Overcapacity’ Claims at WTO Trade Policy Review
China has firmly refuted allegations of “overcapacity” and “economic coercion” raised by certain members during the World Trade Organization’s (WTO) ninth trade policy review of China. In the meeting held on Friday, the Chinese delegation actively addressed concerns regarding its trade policies, emphasizing transparency and open dialogue.
Highlighting recent developments, the Chinese representatives pointed to the conclusion of the third plenary session of the Communist Party of China’s (CPC) 20th Central Committee on July 18. The session adopted a resolution on further deepening comprehensive reforms to advance Chinese modernization. The delegation noted that this resolution underscores China’s commitment to reform, opening-up, and high-quality development, offering new and significant opportunities for the global community.
In response to specific criticisms about “overcapacity” and “economic coercion,” China asserted that its subsidy policies are fully compliant with WTO rules. The success of Chinese enterprises, they stated, is a result of market competition rather than government support. The delegation highlighted the crucial role of China’s new energy products in the global transition to green and low-carbon technologies, arguing that given the current global demand, there is no actual “overcapacity” in these sectors.
Addressing the accusation of “economic coercion,” China firmly denied such practices, asserting that they have never been part of its trade policy. The delegation criticized some WTO members for employing “long-arm jurisdiction,” creating restrictive lists, and arbitrarily sanctioning enterprises and individuals from other member countries, which they deemed true sources of economic coercion.
Throughout the review, the Chinese representatives tackled a wide range of issues with openness, including industrial policy, subsidies, state-owned enterprises, intellectual property protection, cybersecurity and data flow, government procurement, the construction of a unified national market, export controls, standards setting, inspection and quarantine measures, and transparency. They provided detailed explanations on policy objectives, operational specifics, implementation effects, and future directions.
China also clarified its stance on expanding market access for least developed countries, supporting the status of developing members, and pragmatically handling special and differential treatment issues within the WTO framework.
Representatives from 71 WTO members participated in the review. Many praised China’s achievements in reform and opening-up, acknowledging its significant contributions to the WTO. They expressed a desire to deepen economic and trade relations with China and looked forward to China’s enhanced role in global economic recovery, practical cooperation with developing members, and the maintenance of the multilateral trading system.
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China responds to WTO members' concerns, refutes 'overcapacity' claims
cgtn.com
