China issues document calling for objectivity over 'excess capacity'

China's Ministry of Commerce (MOFCOM) on Tuesday released a document titled "China's Position on the So-called Excess Capacity Issue" to clarify the facts surrounding the matter and elaborate China's policy stance on the issue.

The document states that the rapid development of China's modern industries has been driven by innovation, adding that the relationship between manufacturing capacity and demand is a changing dynamic in a market economy.

The document urges all parties to be open-minded and objective when it comes to the issue of capacity, saying that protectionism can only disturb global trade and bring long-term risks to global growth.

Following the release of the document, Lin Weilong, a MOFCOM researcher, told the press that China's industrial capacity utilization is at a reasonable level — 74.4% among factories over a designated size in 2025. Lin said the capacity utilization rate of high-end manufacturers was even higher, while the rate among traditional sectors was relatively lower as result of the ongoing green transition nationwide. 

(With inputs from Xinhua)