China dismisses accusations of ‘squeezing out’ other economies

China’s vice premier brushed off “completely unfounded” concerns that his country was “squeezing out” other economies as he opened a major business fair on Thursday aimed at enticing importers.

The United States and European Union regularly accuse Beijing of heavily subsidising its industry and flooding foreign markets with its products, particularly in vehicle and green technology sectors, to the detriment of their own companies.

“Some institutions and media outlets have been hyping up the so-called ‘China squeeze’ theory,” said Ding Xuexiang as he opened the China International Import Expo in Shanghai.

“Such claims… are completely unfounded,” he added.

More than 4,000 foreign companies gathered this year at the expo, which has been held annually since 2018.

International firms at the event are seeking to expand into the Chinese market, while Beijing promotes its message that China is not just the world’s factory but a vast market open to foreign products.

However, the Asian giant runs significant trade surpluses with the United States and the European Union, fuelling tensions.

Trade imbalances

“It is only natural that people are paying attention to trade imbalances. The key issue is how to achieve a trade balance,” Ding told business representatives.

He added that Beijing has “never deliberately sought a trade surplus”.

Ding maintained that “the competitiveness of Chinese products does not come from government subsidies.”

Rather, it stems from their “technological advantages, sustained high levels of investment in research and development”.

“There are many products we would like to import but cannot obtain because we are not allowed to buy them,” he added.

For several years, the United States has been imposing restrictions on the export of cutting-edge technologies to China, citing national security concerns.

“We will continue to create favourable conditions for companies from around the world to develop their businesses in China,” Ding said, reiterating messaging from Beijing.

Foreign companies have raised concerns about difficulties in accessing the Chinese market, including competition from local firms and regulatory issues.

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Dateline:

Shanghai, China

Type of Story: News Service

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