China has sharply criticized U.S. accusations of industrial overcapacity as a “man-made false narrative,” calling it a smokescreen for American protectionism. The fiery rebuttal came Friday from Yang Tao, a senior Chinese Foreign Ministry official, ahead of U.S. Secretary of State Antony Blinken’s diplomatic visit to Beijing.
Why it matters: The clash highlights escalating trade tensions between the world’s two largest economies. Yang dismissed claims that China floods global markets with excess goods like EVs and solar panels, arguing the U.S. is “anxious about China’s rise” and using economic coercion to suppress competition.
Behind the rhetoric: The “overcapacity” debate comes as Washington weighs stricter tariffs on Chinese tech and green energy exports. Beijing sees this as part of a broader U.S. strategy to contain its development – a modern-day economic Cold War playing out across global supply chains.
What’s next: As Blinken prepares for talks focused on trade and security, analysts say this spat could test whether the rival powers can avoid a full-blown trade war. For young professionals and entrepreneurs tracking global markets, the outcome could reshape everything from EV prices to renewable energy investments.
Why it matters: The clash highlights escalating trade tensions between the world’s two largest economies. Yang dismissed claims that China floods global markets with excess goods like EVs and solar panels, arguing the U.S. is “anxious about China’s rise” and using economic coercion to suppress competition.
Behind the rhetoric: The “overcapacity” debate comes as Washington weighs stricter tariffs on Chinese tech and green energy exports. Beijing sees this as part of a broader U.S. strategy to contain its development – a modern-day economic Cold War playing out across global supply chains.
What’s next: As Blinken prepares for talks focused on trade and security, analysts say this spat could test whether the rival powers can avoid a full-blown trade war. For young professionals and entrepreneurs tracking global markets, the outcome could reshape everything from EV prices to renewable energy investments.
'Overcapacity' Claims Mask Protectionism, Warns…
