China Says Market, Not 'Overcapacity,' Drives Strong Exports to Europe

July 7, 2026
By Mintesinot Nigussie

China has rejected European Union accusations that its exports are creating trade imbalances, arguing that demand from European consumers demonstrates the competitiveness of Chinese products and calling on the bloc to pursue greater economic cooperation instead of what it described as a "zero-sum mentality."

Speaking at a regular press briefing, Chinese Foreign Ministry spokesperson Mao Ning responded to recent comments by European Commission President Ursula von der Leyen, who said the EU's dialogue with China must address trade imbalances and concerns over what she described as excess Chinese industrial capacity entering the European market.

"Are Chinese goods 'overcapacity' or undersupply? The consumers can decide for themselves," Mao said.

She said products that are high quality, competitively priced and in demand naturally find buyers, adding that trade between China and the EU is driven by market demand and the complementary nature of the two economies.

Mao noted that Chinese cooling products, including air conditioners, electric fans and multifunctional sun umbrellas, have seen strong demand across Europe during recent heat waves, with some air conditioner models reportedly selling out.

She said China-EU trade has benefited consumers and businesses on both sides and was the result of mutual market choices rather than government intervention.

Mao urged the EU to "put things into perspective," abandon a zero-sum approach and work with China to expand mutually beneficial cooperation.

Separately, Mao confirmed that Chinese President Xi Jinping had sent a congratulatory message to US President Donald Trump marking the 250th anniversary of American independence, saying the message was sent on behalf of the Chinese government and people.

On security issues, Mao said a missile test conducted by the Chinese military from a nuclear submarine into the Pacific Ocean was part of the country's routine annual military training programme and complied with international law and customary international practice. She said the activity was not directed at any specific country and that relevant countries had been informed before the launch.

Responding to criticism from Japan, Australia and New Zealand over the missile test, Mao said the exercise was conducted safely and professionally and expressed hope that countries concerned would not "read too much into it."

Mao also reiterated China's opposition to the longstanding US embargo on Cuba, describing unilateral sanctions without a basis in international law as illegitimate. She urged Washington to end its blockade and sanctions against Cuba and reaffirmed China's support for Havana's sovereignty.

On bilateral ties with the Netherlands, Mao welcomed closer dialogue and cooperation ahead of a planned visit by Dutch trade officials, saying practical engagement based on mutual respect serves the interests of both countries.

She also responded to questions about a new defence agreement between Australia and Fiji, saying China does not pursue geopolitical competition in the Pacific and hopes countries in the region will avoid targeting third parties.

Addressing reports from Germany alleging that Russian soldiers had received military training in China, Mao dismissed the claims as "pure slander with no factual basis" and said China continues to maintain an objective position on the war in Ukraine while supporting efforts toward a political settlement.

Source: FSX Business News