China Rejects G7 Criticism, Defends Trade Practices

On Wednesday, Chinese Foreign Ministry spokesperson Guo Jiakun voiced strong opposition to what he characterized as "baseless and biased remarks" made at the G7 Summit, asserting they demonstrated a double standard. His remarks were a response to the European Commission President's accusations on June 16th. The accusations included claims that China disregards global trade rules, heavily subsidizes domestic firms, leverages its dominance in rare earths, and floods global markets with overcapacity.

Guo emphasized that China's industrial subsidy policies are guided by principles of openness, fairness, and compliance, and strictly adhere to WTO regulations. He stated that the success of Chinese industries stems from innovation, robust industrial and supply chains, participation in market competition, and abundant human resources. He clarified that their achievements are due to their capabilities, not subsidies.

He also highlighted the significant contributions of China's new energy sector to global climate action and energy transition. Guo dismissed the narrative of overcapacity as a pretext used by certain countries to implement protectionist measures, driven by concerns about their own competitiveness and market share. He argued that the issue is not "overcapacity" but rather "over-anxiety."

Furthermore, Guo pointed out that the EU has been implementing industrial policies with substantial subsidies and support for European companies in recent years. He noted that the EU has even publicly advocated for a "European preference." Data indicates that the EU plans to provide over EUR 1.44 trillion in subsidies between 2021 and 2030, with over EUR 300 billion already issued by 2024. The EU has also introduced various economic and trade tools to enhance its growth and competitiveness. He concluded that achieving this requires abandoning double standards, embracing openness, and fostering cooperation.

Guo concluded by noting the fruitful results of China-EU cooperation over the past 50 years since the establishment of diplomatic ties, benefiting both sides. China remains committed to high-standard opening-up, which will continue to offer significant market and growth opportunities to European companies. China is prepared to enhance communication and coordination with the EU, address trade differences constructively, and achieve win-win outcomes and shared prosperity. He reiterated China's firm opposition to any attempts to undermine its right to development or advance interests at China's expense.