China Responds to EC President’s Overcapacity Allegation

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China has responded to Europe’s claims about a surplus of goods flooding the market, emphasizing that consumer preferences ultimately determine which products succeed.

“Are Chinese goods considered ‘overcapacity’ or is there actually a shortage?” asked Mao Ning, spokesperson for China’s Foreign Ministry, during a recent press briefing. “Consumers have the right to decide for themselves.”

She added, “High-quality products that are in demand and fairly priced naturally find their way to consumers.”

Mao underscored that trade between China and the European Union has benefited consumers and created opportunities for businesses. “This isn’t something that can be imposed; it’s a result of mutual choice that works for both sides.” She called on the EU to adopt a broader perspective, move beyond a zero-sum mindset, and collaborate with China to expand the scope of win-win cooperation.

During a visit to Cork, Ireland, on July 3, the European Commission President declared that upcoming trade discussions with China must deliver concrete results. She emphasized the importance of clarity in negotiations, highlighting concerns about subsidized excess capacity flooding European markets and limited access for European companies in China.

She expressed the EU’s desire to address unfair competition caused by subsidies. Following high-level talks between EU and Chinese trade officials, EU Trade Commissioner Maros Sefcovic announced that Brussels expects tangible outcomes by October.

A notable factor in the negotiations is the recent surge in Chinese-made air conditioners across Europe. During a heatwave, portable and easy-to-install split AC units from Chinese manufacturers sold out in multiple markets.

Exports of Chinese air conditioners to the EU increased by 43 percent in the first half of the year, reaching nearly $3.8 billion. Chinese brands’ market share rose from 27 percent to 41 percent in the same period.

Midea Group’s PortaSplit AC sales in Europe doubled to over 200,000 units in the first half compared to last year. Gree Electric Appliances saw more than a 40 percent increase in sales in France, Italy, and Spain. Additionally, Haier Group captured 22 percent of the German home air conditioner market.