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HOME > Press and Media Service > Embassy Spokesperson
Embassy Spokesperson on the So-called “China Overcapacity” (2)
2024-05-23 18:00

Question: It’s reported that China's new energy sector’s advantage comes from non-market practices such as Chinese government subsidies, which are “unfair competition”. What’s your comment?

Embassy Spokesperson: This is baseless hype and we firmly reject it. China’s advantage in new energy is underpinned by its strengths in technology, market and industrial chains, not government subsidies. There is no so-called “unfair competition.” After decades of rapid development, China’s new energy industry has gained a competitive edge thanks to its super-large market, full-fledged industrial system and abundant human resources, and more than that, huge investment in R&D and the unremitting spirit of entrepreneurs. 

Reducing production costs through technological innovation, Chinese enterprises have improved the affordability of new energy products. This has not only enriched global supply and eased global inflationary pressure, but also made important contributions to the global response to climate change and green and low-carbon transition.

Speaking of non-market practices and unfair competition, the EU and the US have introduced acts that not just explicitly provide subsidies but also contain exclusive and discriminatory clauses over the past two years, and this contravenes the principles of the market. Relevant countries have also imposed illegal sanctions on Chinese entities and individuals under various excuses, and this is unfair competition. Hyping the so-called “overcapacity” in China is actually aimed at providing a new excuse for protectionism and market bullying. 

History has proved that subsidies do not guarantee industrial competitiveness and protectionism does not nurture real business champions. Cracking down on China's new energy sector will only lead to a “lose-lose” situation. We hope all countries will stay open, properly handle disputes in line with the principles of market economy and international trade rules, and jointly keep the global industrial and supply chains stable. 

If relevant parties insist on politicising economic and trade issues and arbitrarily linking them to security, harming China's legitimate rights and interests, China will take resolute action in response. 

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