Chinese Ambassador to Qatar Refutes "China's Overcapacity" in Middle Eastern Media
Facts and Truths About China's Industrial Policies
In recent times, some Western politicians and media have distorted the interpretation of China's industrial policies, claiming that China provides excessive subsidies to domestic enterprises and absorbs excess capacity through exports, which negatively affects the global market.
This argument distorts the concept of "industrial subsidies" and misuses the term "overcapacity," violating basic economic principles and containing serious misleading information, which is sheer nonsense.
China's industrial subsidy policies are reasonable and comply with the rules. Guiding industrial development and adjusting the industrial structure through industrial subsidy policies is a common practice among countries worldwide, the key being to abide by World Trade Organization (WTO) rules.
According to WTO rules, China's industrial subsidy policies adhere to the principles of openness, fairness, and compliance, focusing on the R&D stage and the consumer side, not linked to exports, equally applicable to all market entities, and not including prohibited subsidies.
China's industrial development relies on continuous technological innovation, the improvement of the industrial chain and supply chain system, and adequate market competition, rather than relying on subsidies. In contrast, the United States and Europe have significantly increased their subsidies in recent years and have adopted a large number of exclusionary and discriminatory measures.
For example, the electric vehicle subsidy policy in the U.S. Inflation Reduction Act discriminates against Chinese companies, clearly violating WTO rules. The European Commission has also approved numerous subsidy programs.
High levels of Chinese exports do not mean "overcapacity." In the context of economic globalization, the world has become an inseparable whole, with production and consumption effectively coordinated and regulated globally.
Countries cooperate based on comparative advantages, forming different industrial structures and capacity sizes, which not only improves the efficiency of global resource allocation but also enhances the well-being of people in various countries. To equate a country's capacity exceeding domestic demand as "excess" is contrary to objective facts and laws.
The promotion of "overcapacity" actually reflects a sense of excess anxiety. Using "overcapacity" as an excuse to demonize and suppress China is essentially a reflection of the anxiety of certain countries regarding their own product competitiveness and market share.
Restricting Chinese product exports and Sino-China investment cooperation through means such as "shifting blame" is naked protectionism and interventionism, artificially dividing the global market, which violates economic laws and market principles, harms trade, investment, and the stability of global supply chains and industrial chains. These countries cannot hinder China's progress, but will only make China stumble.
History and reality have repeatedly proven that protectionism is harmful and does not benefit anyone; there are no winners. China and Qatar are both firm supporters and beneficiaries of economic globalization and free trade.
Their cooperation focuses on energy, infrastructure construction, and new growth points such as financial investment and scientific and technological innovation, forming a complementary and mutually beneficial cooperation pattern. This sets an example of mutual cooperation under the context of economic globalization, effectively serving the high-quality development of the two countries, benefiting the people of both countries, and making an important contribution to world economic growth.
China will continue to promote high-level opening-up, create a first-class, market-oriented, rule-of-law, and international business environment, and share the new opportunities of Chinese modernization with all countries around the world.
At the same time, we resolutely uphold the multilateral trading system centered on the World Trade Organization, firmly support trade and investment liberalization and facilitation, and resolutely oppose trade protectionism.
The Chinese side is willing to deepen cooperation in the industrial chain and supply chain with countries around the world, including Qatar, promote scientific and technological innovation and industrial development, drive inclusive and equitable economic globalization, and work together to build a community with a shared future for mankind.
Source: Al Jazeera
Author: Cao Xiaolin, Chinese Ambassador to Qatar
Original: https://www.toutiao.com/article/1838076506381316/
Statement: The article represents the views of the author.