The “China Shock 2.0” narrative has resurfaced in some Western countries, accompanied by new trade restrictions targeting Chinese industries. However, China’s industrial growth is driven by technological innovation, strong manufacturing capacity, and growing global demand, particularly in new energy and electric vehicles.

China’s position paper on the so-called excess capacity issue argues that trade surpluses should not simply be equated with overcapacity.

China’s exports are supported by economies of scale, innovation and demand from countries pursuing green and industrial development.

Rather than creating a “shock,” China’s industrial development presents opportunities for global cooperation. Chinese technologies and products are helping advance digital transformation, green development and affordable access to manufactured goods.

China also continues to support industrialization in developing countries through technology sharing, capacity cooperation and access to production equipment.

As protectionism threatens global supply chains, greater openness and cooperation are needed. China has called for stronger multilateral trade, innovation and industrial cooperation to ensure the benefits of technological and industrial development are shared more widely.

Source: People’s Daily