China ‘overcapacity’ is a smokescreen for Western protectionism

Western policymakers in Washington and Brussels are increasingly using the term "overcapacity" to describe China's production of goods like steel, electric vehicles, and green technology. They argue that China produces more than it can consume, leading to a global flood of subsidized products. However, the article contends that economic data contradicts this narrative, suggesting double standards and protectionist motives. For instance, official Chinese data indicates that its ferrous metals sector operated at 78.1% capacity in 2024 and 79.7% in 2023, figures considered healthy by the European Union. This suggests that the "overcapacity" claim may be a pretext for protectionist policies rather than a reflection of actual economic conditions.