China hits back at criticism over excess industrial capacity as more US tariffs loom

Key Points:

• China rejected claims of industrial overcapacity ahead of a U.S. investigation that could lead to new tariffs on Chinese goods, emphasizing that its trade surplus is not intentional but driven by market dynamics.
• The Chinese Ministry of Commerce criticized the notion of a "China shock 2.0," calling it a false accusation that unfairly targets China's industrial growth and threatens Western economic interests.
• Premier Li Qiang framed recent economic trends as a "China Opportunity 2.0," highlighting potential benefits rather than threats from China's expanding manufacturing capacity.
• The U.S. is expected to announce findings from a probe into excess capacity in 16 economies, including China, which may result in increased tariffs; this follows recent U.S. tariff hikes related to forced labor concerns.
• Despite China's objections, Western countries, including the EU, are implementing trade measures to protect domestic industries from the impact of Chinese imports, reflecting political pressures to address trade imbalances.