China rejects 'overcapacity' claims in new policy paper, defends industrial strategy

China's Ministry of Commerce (MOFCOM) has released a policy paper rejecting allegations that the country's manufacturing sector suffers from "overcapacity," arguing that the concept has been misused to justify protectionist trade measures against Chinese exports. The document, published on July 28, 2026, outlines Beijing's position on industrial policy, trade balances and global supply chains.