On May 1st, at the meeting of the Committee on Subsidies and Countervailing Measures of the World Trade Organization held on the 29th, the Chinese representative comprehensively refuted the false accusations made by the United States and other individual members against China regarding “overcapacity”, condemned the United States’ “equivalent tariffs” and discriminatory subsidy policies, which seriously undermine WTO rules, and called on members to unite and cooperate, oppose unilateralism and protectionism, and defend the multilateral trading system centered on the WTO. The Chinese side stated that there is no universally recognized standard or calculation method for “overcapacity”, and the imbalance between supply and demand is normal and absolute. In the context of economic globalization, a country’s energy and products are not only supplied to its own market, but also participate in global trade and market competition based on comparative advantages. Chips, airplanes, soybeans from the United States, and cars from Germany and Japan are all exported in large quantities. The hype of “overcapacity” by members such as the United States violates the laws of market economy and the logic of globalization. Essentially, it is a concern for their competitiveness and market share, using “overcapacity” as an excuse to create anxiety, smear and suppress China, and find poor excuses for adopting unilateralism and protectionism measures. The Chinese side emphasizes that the development of Chinese industries and the competitive advantage of Chinese products are not the result of subsidies, but rather stem from continuous technological innovation and collaborative development. China attaches great importance to trade policy compliance, continuously ensuring that trade policies, including subsidy policies, comply with WTO rules, actively fulfilling transparency obligations such as subsidy notifications, and firmly upholding the multilateral trading system. The Chinese side pointed out that the United States’ “reciprocal tariffs” disrupt global trade and harm the interests of developing members, while China is the “stabilizer” of global trade growth and has always firmly stood on the side of developing members. The fundamental reason why the United States repeatedly accuses and smears China on the issue of production capacity, describing China as a “threat”, is that the United States always insists on “zero sum game” and “America first”, only cares about its own interests, and does not believe that win-win results can be achieved through economic and trade cooperation. At the same time, under the issue of “US discriminatory subsidy policies” in the committee, China strongly criticized the US discriminatory subsidies and “equivalent tariffs” such as the Chip and Science Act for distorting the market, pursuing “double standards”, and violating WTO rules. It also pointed out that the US approach deviates from the laws of the market economy and seriously disrupts the normal order of international trade and investment. China calls on its members to strengthen cooperation, oppose unilateral bullying by the United States, and jointly uphold the rules based multilateral trading system.
Scan code to share