China flays overseas talk about 'overcapacity'

New green sector issue political, not based on economic concerns

Despite external pressures and narratives surrounding the so-called overcapacity in manufacturing, China should and will remain steadfast in its commitment to fostering new quality productive forces and developing emerging fields with hard-won advantages, a senior economist said on Thursday.

In an exclusive interview with China Daily, Liu Xueyan, director of a key research department of the Chinese Academy of Macroeconomic Research, said: "China's edge in emerging fields like new energy vehicles is powered by market behaviors, especially sufficient market competition, rather than government subsidies.

"Overcapacity signifies a situation in which there is too much production capacity relative to demand levels. However, for the emerging industry, demand is uncertain.