China News Service, April 8. Recently, the so-called "China's overcapacity" problem has become one of the focus issues of foreign media. French entrepreneur Arnold Bertrand posted on social media on the 6th that there is currently no sign of "overcapacity" in China. This argument is essentially that the West is worried that if China continues to develop, it will far surpass other countries and affect the interests of the West. .
China does not have “overcapacity”
The article first analyzes three "key indicators to judge whether a country has overcapacity": capacity utilization, inventory levels and profit margins, and concludes that China has no problems with these three key indicators.
The article specifically analyzed that in the past ten years, China's production capacity utilization rate has been quite stable, currently around 76%, which is almost the same as the 78% in the United States; in terms of inventory levels, as of the beginning of 2024, China's finished goods inventory index is about 49, which is not It exceeds the 50 red line, so there is no problem with China's inventory levels; in terms of profit margins, in the first two months of 2024, profits of China's industrial companies increased by 10.2%, and have maintained a growth trend since August 2023.
Accordingly, the article pointed out that there is no sign that China has an "overcapacity" problem.
“The West is worried about being surpassed by China”
The article further analyzes that the substantive problem with this Western argument lies in competitiveness, not production capacity.
The article analyzes multiple aspects such as industrial chain, talent, technology, energy prices, and innovation, and concludes that "Chinese enterprises have very strong competitiveness."
The article pointedly pointed out that the fundamental reason why the West is hyping China's "overcapacity" is that some Western leaders are worried that if China continues to develop, it will far surpass other countries, thus affecting their interests.
The article further pointed out, "It is wrong to demonize China, and it is also wrong to ask China to do a big favor and slow down so that the West can keep up." Therefore, it is very unfair to characterize China as deliberately creating "overcapacity." fair.
Bertrand believes that China is playing by the rules and has invested a lot of resources and time in education and innovation in recent years. Looking back at the West, its disastrous policies have led to slow development over the past few decades.
The article concludes by emphasizing that the "overcapacity theory" once again proves the poor leadership of the West, which is that it "would rather blame others for its own failures than face reality." (over)