Trade protectionism not conducive to solving China's overcapacity issues: Minister

Trade protectionism measures are not conducive to solving overcapacity issues, Liao Min, China's Vice Finance Minister, said on Monday.

That came after US Treasury Secretary Janet Yellen accused China of overcapacity in emerging industries and warned China that Washington will not accept new industries being decimated by Chinese imports.

"Against the backdrop that technological progress in the new energy industry has driven in-depth adjustments to the global production and supply chain, many countries including China are facing challenges brought by such changes. Therefore, the international community should view this phenomenon objectively and make practical and rational policy choices," Liao said.

China strongly opposes developed economies' use of security concerns and protectionism measures in green energy sectors, Liao said.

Applying restrictions in the new energy industry will further weaken the US' ability to address climate change and will only harm their own interests, he said.

Excess industrial capacity is a manifestation of the market mechanisms at play which may occur in any economy that establishes a market economic system, and has also occurred multiple times in the history of Western countries such as the US, Liao said, adding that the solution to these problems mainly relies on the market and the law of value.

China's new energy industry now enjoys competitive advantages, a complete industrial system, and abundant human resources after experiencing decades of rapid development, and through technological innovation, companies in this field have cut production costs and improved the economic accessibility of new energy products, he said.

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