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China Daily Website  

China boosting, not damaging, global economy

Updated: 2016-02-24 19:32
By Wang Xu (chinadaily.com.cn)

Beijing denies its industrial overcapacity is "hurting the world economy", as it questioned a report on Wednesday by a European business group.

China's contributed more than 50 percent to global GDP in recent years and last year accounted for nearly 25 percent of global economic growth despite facing increasing downward pressure, Foreign Ministry spokeswoman Hua Chunying told reporters during a daily press briefing.

The conclusion that "China is wreaking far-reaching damage on the global economy", is difficult to arrive at, Hua added.

Earlier this week, the European Union Chamber of Commerce in China issued a report on China's industrial overcapacity. It claimed that that China's overcapacity in heavy industry is wreaking "far-reaching" damage on the global economy, with steel production "completely untethered" from market demand.

Hua said overcapacity did exist in some industries in China, but it is only a phenomenon that is occurring as China makes a structural adjustment.

Citing China's Belt and Road Initiative and industrial capacity cooperation with other countries, which answers international demand, Hua said the initiative and cooperation are creating new space and releasing more potential for development.

This is why a number of developed countries, including some European Union members, joined with us to promote capacity cooperation with other developing countries, Hua said.

China can combine its advantage in manufacturing and high-end technology from developed countries with the demand from developing countries to inject new impetus to the world economy, Hua added.

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