A: We have noted the relevant reports. On the so-called “overcapacity” issue, China has made its position clear on multiple occasions. Against the backdrop of globalization, we should respect economic laws and market principles and view the capacity issue from an objective, comprehensive, and long-term perspective. If a trade surplus alone is enough to justify the label of “overcapacity”, then wouldn’t the automobiles, pharmaceuticals, wine, and cosmetics exported by the EU also qualify as such? We have noted that relevant countries are already investigating the EU’s “overcapacity” issue. Under such circumstances, the EU has even less reason to apply double standards.

China believes that if the EU introduces a new trade tool targeting China under the pretext of “overcapacity,” it would essentially be an attempt to cover up its own industrial difficulties and smear and suppress external competition. Such an act will not only damage China-EU economic and trade relations, but also undermine the stability of global industrial and supply chains, and will ultimately backfire on European industries. The EU should bear full responsibility for this.

China always maintains that China and the EU should work to resolve differences through cooperation and consultation. China will not provoke trouble, but once China’s national interests and the legitimate rights of Chinese enterprises are harmed, China will not idly stand by. We urge the EU to face the reality, return to the right track of dialogue and consultation, and take actions that are truly beneficial to the development of China-EU economic and trade relations. If the EU side insists on introducing the so-called new tool and adopts discriminatory restrictive measures against Chinese companies or products, China will take resolute countermeasures.