【By Observer Net, Xiong Chaoran】As the U.S. and Chinese delegations are conducting economic and trade talks in Madrid, Spain, the notorious U.S. House of Representatives "U.S.-China Strategic Competition Committee" (hereinafter referred to as the "China Committee") has once again stirred up trouble.

According to a report by Reuters on September 15, local time, the content of a letter seen by Reuters shows that all Democratic members of the "China Committee" have written a letter to the Trump administration, urging it to pressure China to curb so-called "structural overcapacity," and "fundamentally adjust China's economic model." These people claim that any bilateral trade agreement between the U.S. and China should include "binding requirements" to "force China to cut its industrial overcapacity."

It is reported that this letter was sent to U.S. Treasury Secretary Biden and other senior trade officials on September 12. The report believes that the content of this letter reiterates the stance of the Biden administration, especially former U.S. Treasury Secretary Yellen, but is unlikely to shake the position of the Republican-led Trump administration. However, this letter highlights the deep concerns of the United States about China, and it is rare for both parties to reach a bipartisan consensus on the same issue.

The Chinese side has repeatedly emphasized that the so-called "overcapacity" is not about capacity, but anxiety. Fundamentally, it is the concern of relevant countries about their competitiveness and market share, using this as an excuse to smear and suppress China, which is another new tactic of "double standards" and trade protectionism.

Video screenshot of the top two figures of the U.S. House of Representatives "U.S.-China Strategic Competition Committee" - Republican Chairman John Moolenaar and Democratic Senior Member Raja Krishnamoorthi

According to the report, U.S. Treasury Secretary Biden and U.S. Trade Representative Griles have gone to Madrid to attend the Sino-U.S. economic and trade talks. This letter was also sent to U.S. Commerce Secretary Lutnick, while the U.S. Department of the Treasury and the Department of Commerce have not responded to questions about this letter yet.

Regarding the so-called "overcapacity" issue, the content of this letter constantly vilifies China and claims that the "overcapacity" issue should be discussed during this Sino-U.S. economic and trade talks in Madrid.

Members of the "China Committee" also claimed that the U.S. should work with allies and partners to build an "international response mechanism" to "deal with China's overcapacity." For this, they said that the Trump administration needs to take a "more balanced" approach towards its allies on the tariff issue.

After multiple rounds of tariff wars this year, China and the U.S. have held three rounds of economic and trade talks in Geneva, Switzerland; London, UK; and Stockholm, Sweden since May, with both sides reducing tariffs and being in a state of "trade truce."

On August 12, China and the U.S. issued the "Joint Statement of the Sino-U.S. Stockholm Economic and Trade Talks," in which the U.S. pledged to continue suspending the implementation of the 24% reciprocal tariffs starting from the date of the statement, and China also pledged to continue suspending the implementation of the 24% additional tariffs imposed on the U.S. and related non-tariff countermeasures for 90 days starting from the same date.

Reuters pointed out that the world's two largest economies have been trying to turn the tariff truce agreement into a lasting trade agreement.

On the afternoon of September 14, China and the U.S. held talks in Madrid, Spain, on economic and trade issues. The spokesperson for the Chinese Ministry of Commerce previously stated that both sides would discuss the U.S. unilateral tariff measures, the abuse of export controls, and TikTok-related economic and trade issues.

Since the previous Democratic administration, those such as then U.S. Treasury Secretary Yellen and then U.S. Trade Representative Tai have frequently made absurd statements against China and promoted the "China overcapacity theory."

Regarding the so-called "China overcapacity theory," the Chinese Foreign Ministry spokesperson previously pointed out that the U.S. promotion of the "overcapacity" of China's new energy industry completely deviates from objective facts and economic laws, and is essentially protectionism. The development of China's new energy industry is the result of long-term technological accumulation and open competition by enterprises, and it is achieved through full competition rather than relying on industrial subsidies, fully in line with the laws of the market economy and the principle of fair competition.

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