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Why is China's advanced capacity targeted as 'overcapacity'?

chinadaily.com.cn | Updated: 2026-09-10 19:04
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Western countries frequently label China with "overcapacity" — but what's the truth? Tu Xinquan, dean of the China Institute for WTO Studies at University of International Business and Economics, told China Daily's Dialogues with Thinkers that overcapacity is a market economy norm, and exporting surplus capacity is not inherently problematic. The key is separating advanced from backward capacity. Some countries with backward capacity, unwilling to exit the market, accuse China of "unfair competition" in clean energy and other areas where its advanced capacity gives it a clear edge — and that's the real issue. The solution isn't labeling; it's respecting market forces and phasing out outdated capacity.

(Reporter: Yao Yuxin, Video: Pan Yixuan, Intern: Wang Xinyang)

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