At the esteemed Boao Forum for Asia, renowned economist Jeffrey Sachs robustly countered US claims that China is fostering industrial overcapacity, calling such assertions “absolutely wrong.” Sachs, a professor at Columbia University, emphasised the necessity of China’s manufacturing capabilities in achieving a global transition towards green energy: “The world needs China’s capacity.” His remarks emerged against the backdrop of criticisms targeting China’s electric vehicle and solar panel sectors, amidst rising tariffs and trade restrictions in Western markets.
Trade barriers have heightened the costs of Chinese goods within the EU and have even led to the outright exclusion of these products from the US market. Amid rising tensions, accusations have proliferated concerning excessive competition, known as “neijuan,” potentially hampering supply chains. In response, officials and state media have vigorously defended China’s manufacturing strength, rejecting allegations that it is deliberately destabilising global trade.
Jeffrey Sachs, an esteemed American economist, refuted US allegations of Chinese overcapacity during the Boao Forum for Asia, insisting such claims are “absolutely wrong.” He argued that China’s manufacturing strength is vital for the global green transition. Amid rising tariffs on Chinese goods in the US and EU, Sachs called attention to the necessity of China’s capabilities while defending against accusations of trade disruption.
In summation, Jeffrey Sachs has fervently rejected US claims of Chinese overcapacity, framing it as a misunderstanding of China’s crucial role in global manufacturing. His perspective highlights the importance of China’s capacity in facilitating a shift towards renewable energy, countering trade restrictions and defending against accusations of trade manipulation. As geopolitical tensions mount, such discussions become increasingly vital.
Original Source: www.scmp.com
