Home » China and the United States are again at war over overcapacity. Scholars say the United States is paving the way for more sanctions against China | Lianhe Zaobao

China and the United States are again at war over overcapacity. Scholars say the United States is paving the way for more sanctions against China | Lianhe Zaobao

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China and the United States are again at war over overcapacity. Scholars say the United States is paving the way for more sanctions against China | Lianhe Zaobao

The China-U.S. Economic Working Group meeting once again clashed over the issue of China’s overcapacity, with the United States and China expressing concerns about each other’s economic and trade practices.

During the meeting held in Washington, the United States reiterated its concerns about China’s industrial overcapacity, particularly in the “three new” sectors of new energy vehicles, lithium batteries, and photovoltaic energy. The U.S. accusations are seen as a strategy to curb China’s growth in the high-tech industry and potentially pave the way for more sanctions or restrictions on China.

Chinese Vice Minister of Finance Liao Min and U.S. Deputy Secretary of the Treasury Shambow co-chaired the meeting and engaged in discussions on global and Sino-U.S. macroeconomic situations, balanced growth, and other issues. The U.S. delegation expressed concerns about China’s non-market behavior and industrial overcapacity, while Chinese representatives raised issues regarding U.S. economic and trade restrictions on China.

Following the meeting, Chinese Embassy spokesperson Liu Pengyu defended China’s export growth, stating that accusations of overcapacity are unjust and harm economic stability. Associate professor Gu Qingyang from the Lee Kuan Yew School of Public Policy at the National University of Singapore noted that the U.S. is using the industrial overcapacity issue as a new tactic in the Sino-U.S. game to maintain its leadership in the high-tech industry.

Chinese economist Chen Bo criticized the U.S. accusations, stating that they lack a rigorous academic basis and are driven by political considerations. He believes that the U.S. sanctions on Chinese products may not have a significant impact due to limited exports to the U.S.

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As the tensions continue between the two economic powerhouses, the implications of their disputes on global trade and economic stability remain uncertain. Stay updated on the latest developments by following our official Facebook page.

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