China rejects overcapacity claims amid trade tensions

On July 28, 2026, China issued a sweeping rebuttal against US and EU claims of excess industrial capacity, as more US tariffs loom. The Chinese government defended its industrial policies, stating that its production levels are market-driven and not a threat to global markets. This comes amid rising trade tensions and ahead of potential new tariffs. Additionally, China reported that its tax revenue exceeded 10 trillion yuan in the first half of the year, citing economic improvement. The rebuttal also addressed concerns over egg affordability, dismissing fears of price spikes.