China pushes back against Western overcapacity claims in new document

China’s Ministry of Commerce has released a document rebutting claims of Chinese overcapacity, arguing that its industrial output is not a result of subsidies and insufficient domestic demand, but is instead driven by innovation and reform.
“There is no necessary connection between industrial subsidies and overcapacity,” the ministry said in the position paper published on Tuesday.
Many countries adopt subsidies in pursuit of their developmental needs, the document added, citing Washington’s...