Beijing: Beijing on Tuesday accused some countries of politicizing economic and trade issues by making allegations of Chinese overcapacity in a policy paper outlining its stance on the issue. The paper, released by China's Commerce Ministry, highlighted the profound changes in the global economic and trade landscape in recent years, marked by intensifying competition and the restructuring of global supply chains.

According to Anadolu Agency, the policy paper noted that some countries and economies, concerned about their own industrial competitiveness and market position, have politicized economic and trade issues by promoting claims of Chinese "overcapacity." The paper emphasized the importance of viewing the issue objectively and fairly, while upholding principles of openness, cooperation, and mutual benefit.

The document warned that protectionism could disrupt the global economic and trade order, undermine the security and stability of global supply chains, and pose long-term risks to global economic growth. It described overcapacity as a "dynamic phenomenon" inherent in market economies, urging that capacity conditions be evaluated according to the respective development stages and levels of different economies and industries.

The paper further explained that the shift from a single-center to a multi-center global industrial landscape is a natural outcome of the international division of labor. It attributed China's emergence as the "world's factory" to its integration into economic globalization and global supply chains.

Additionally, the paper outlined China's position on the relationship between overcapacity and industrial subsidies, trade surpluses, economic imbalances, and market competition. It argued that industrial subsidies do not inherently lead to overcapacity, trade surpluses are not necessarily evidence of overcapacity, global economic imbalances have complex historical causes, and market competition is essential for optimizing production capacity and supporting healthy industrial development.

Beijing also advocated for creating new demand through industrial upgrading, maintaining open markets, safeguarding stable global industrial and supply chains, opposing the politicization of economic issues, reducing trade and investment barriers, defending World Trade Organization rules, and making global economic governance fairer.