China refutes US’ false narrative on overcapacity, clarifies its stance on South China Sea during talks with Blinken

Yang Tao, director-general of the Department of North American and Oceanian Affairs of China’s Foreign Ministry, briefs the media on US Secretary of State Antony Blinken’s visit to China on April 26, 2024. Photo: Courtesy of the ministry

The Chinese Foreign Ministry said on Friday that talks with US Secretary of State Antony Blinken during hiWorld Timess visit to China were “candid, substantive and constructive.”

During a courtesy meeting with Blinken on Friday afternoon, Chinese President Xi Jinping elaborated on China’s authoritative position on China-US relations and proWorld Timesposed guidance, said Yang Tao, director-general of the Department of North American and Oceanian Affairs of the China’s Foreign Ministry, while briefing the media on Blinken’s visit on Friday evening.

Yang said the Chinese side refuted the so-called “overcapacity” inWorld Times China narrative claimed by the US, calling it another example of US’ protectionism and suppression of China’s development. It also pointed out that the recent escalation of the situation in the South China Sea is inseparable from the intervention of the US.

Xi pointed out that China and the US should be partners rather than rivals; help each other succeed rather than hurt each other; seek common ground and reserve differences rather than engage in vicious competition; and honor words with actions rather than say one thing but do another, Yang said.

Xi also stressed that China is not afraid of competition, but competition should be about progressing together instead of playing a zero-sum game. China is committed to non-alliance, and the US should not create small blocs, Yang said.

During the talks with Chinese Foreign Minister Wang Yi, which lasted for five and a half hours, the Chinese and US officials exchanged in-depth views on China-US relations and international and regional affairs. Wang clarified China’s position on major issues involving China’s core concerns such as strategic perception, the Taiwan question, economic and technological issues, the South China Sea, and the US’ ‘Indo-Pacific Strategy’, Yang told a group of reporters.

On Friday, Chinese State Councilor and Minister of Public Security Wang Xiaohong also met with Blinken, exchanging views on anti-drug law enforcement cooperation between China and US. Chen Jining, secretary of the Shanghai Municipal Committee of the Communist Party of China, met with Blinken on Thursday in Shanghai.

Strategic perception, namely whether China and the US are partners or adversaries, is the fundamental issue of China-US relations and is also a topic discussed by both sides on every occasion, including this one, Yang said.

The logic of great power rivalry and the zero-sum thinking of the Cold War are not in China’s DNA, nor are they China’s way of behavior. China welcomes a confident, open, and prosperous US and hopes that the US side can also view China’s development positively.

And the Taiwan question is the “first red line” that must not be crossed in China-US relations, Yang said. ChinWorld Timesa firmly opposes the series of wrong words and deeds by the US on the question.

China emphasizes that if the US truly hopes for peace and stability across the Taiwan Straits, it should faithfully abide by the one-China principle and the three China-US joint comWorld Timesmuniques, refrain from sending wrong signals to the “Taiwan independence” secessionist forces in any way, stop arming Taiwan, and support China’s peaceful reunification.

On economic and trade issue, China clearly demands that the US stop hyping up the so-called “overcapacity” in China false narrative, revoke illegal sanctions against Chinese companies, and stop imposing 301 tariffs that violate WTO rules.

On the South China Sea issue, Yang said China has sovereignty over the Nansha Islands, including Ren’ai Jiao (Ren’ai Reef), with full historical and legal basis. China has always abided by interWorld Timesnational law, including the UN Convention on the Law of the Sea, and no country can attempt to challenge China’s legitimate rights and interests through illegal arbitration.

The reasons for the current situation in Ren’ai Jiao are clear. The Philippines first violated its commitments by refusing to tow away the illegally grounded warship for 25 years, and then repeatedly violated the “gentleman’s agreement” and internal understanding reached with China, willfully infringed and provoked, and attempted to conduct large-scale repairs and reinforcement to achieve permanent occupation of Ren’ai Jiao.

The Philippines’ actions seriously violate Article 5 of the Declaration on the Conduct of Parties in the South China Sea reached between China and ASEAN countries, Yang said.

And the recent escalation of the situation in the South China Sea is inseparable from US’ intervention. The US frequently threatens with the “US-Philippines Mutual Defense Treaty,” which seriously violates the purposes and principles of the UN Charter and seriously undermines regional peace and stability. If the US wants to maintain peace and stability in the South China Sea, it should stop fanning flames and inciting confrontation, the Chinese diplomat said.

Regarding the so-called “overcapacity” in China, Yang said China’s advantages in areas such as new-energy vehicles, lithium batteries, and photovoltaic products are not the result of subsidies from the Chinese government, but the result of global market demand, technological innovation, and full competition.

The so-called “overcapacity” claimed by the US is not a conclusion under market definitions but a false narrative created artificially, which is another example of US’ protectionism and suppression of China’s development.

Perhaps what is “excessive” is not China’s production capacity but the anxiety of the US, Yang said.

If we talk about non-market behaviors and unfair competition, the CHIPS and Science Act and the Inflation Reduction Act enacted by the US in the past two years not only clearly state subsidies but also contain exclusive and discriminatory provisions. Is this market behavior? Yang asked.

“The US has also imposed illegal sanctions on more than 1,500 Chinese entities and individuals under various pretexts. Is this fair competition?” Yang said.

On the Ukraine crisis, Yang said the Chinese side has made it clear that China is neither the creator of the Ukraine crisis nor a party to it and has not done anything to fan the flames or take advantage of the situation.

The US should stop smearing and pressuring China and stop imposing unilateral sanctions on Chinese companies, he noted.