KIGALI, Aug. 7 (Xinhua) -- Claims by the United States and some of its allies that China is creating "overcapacity" in manufacturing should be assessed through international trade rules rather than political rhetoric, Gerald Mbanda, a Rwandan researcher and publisher on China-Africa development and cooperation, has said.
In a recent interview with Xinhua, Mbanda said overcapacity is an economic condition, not a legal violation, emphasizing that no international law prohibits a country from expanding its manufacturing capacity, increasing productivity or exporting competitively priced goods.
"For several years, China has faced accusations of creating 'overcapacity,' particularly in sectors such as electric vehicles, solar panels, batteries and steel. The real question is whether overcapacity is a crime or simply a feature of a highly productive economy," Mbanda said.
"From both an economic and legal perspective, the answer is straightforward: overcapacity, in itself, is not a crime."
He noted that the global trading system under the World Trade Organization (WTO) is based on the principle of comparative advantage, allowing countries to specialize in industries where they are most competitive.
"No international law prohibits a country from expanding its manufacturing capabilities, increasing productivity or exporting goods that consumers in other countries are willing to buy," he said.
According to Mbanda, China's manufacturing strength is the result of decades of investment in infrastructure, education, industrial planning, technological innovation and efficient supply chains.
He added that economies of scale have enabled Chinese manufacturers to lower production costs while maintaining quality, a path many developed economies followed during their industrialization.
"The United States itself became an industrial superpower during the twentieth century by producing goods on a massive scale and exporting them across the world," he said.
Mbanda argued that accusations of overcapacity often reflect concerns about market competition rather than violations of international law. Efficient manufacturing, he said, benefits consumers through lower prices, greater choice and faster technological innovation.
He added that affordable Chinese electric vehicles, solar panels and batteries have accelerated the global transition to clean energy by making these technologies more accessible, particularly in developing countries.
Addressing criticism that China's industrial policies create an uneven playing field, Mbanda said governments around the world support strategic industries through subsidies, tax incentives, research funding and procurement policies.
"The United States has enacted the Inflation Reduction Act to promote domestic clean-energy manufacturing, while the European Union has also introduced industrial strategies to strengthen its competitiveness. Industrial policy is therefore not unique to China," he said.
Mbanda stressed that international trade discussions should focus on whether specific practices violate agreed rules, such as dumping products below cost or providing prohibited subsidies, rather than on production volume itself.
"Producing large quantities of goods is not illegal. If particular trade practices violate international obligations, they should be addressed through established legal mechanisms rather than broad political labels," he said.
He noted that the world faces challenges including climate change, energy insecurity and rising living costs. Large-scale production of renewable energy equipment, he said, has reduced the cost of solar power, batteries and electric mobility, enabling many African countries to expand energy access and modernize transportation.
"Rather than viewing production capacity solely as a threat, it should also be seen as a contribution to global development when accompanied by fair trade practices," he said.
Mbanda noted that industries often invest ahead of future demand, particularly in emerging technologies, making production capacity a normal part of industrial development.
Calling for evidence-based discussions on China's manufacturing strength, Mbanda said economic competition is an inevitable feature of globalization, and countries that innovate, improve productivity and manufacture efficiently will naturally become more competitive.
"Overcapacity is not a crime under international law. It is an economic condition arising from investment, technological advancement and industrial expansion. A rules-based global trading system should distinguish between legitimate industrial competitiveness and actual violations of international trade law, ensuring that economic debates remain grounded in facts rather than perceptions," he added. Enditem
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