Overview
- China's commerce ministry published a formal paper this week rejecting Western accusations of industrial overcapacity and calling such claims protectionist and logically flawed.
- Top Communist Party leaders signalled policy continuity by endorsing targeted support for industry rather than broad consumer stimulus or deep structural reform.
- Brussels has set an October deadline for dispute resolution and face-to-face meetings between Xi Jinping and President Trump are planned later this year, putting diplomatic pressure on both sides.
- International research from bodies such as the OECD and McKinsey finds large Chinese subsidies, rapid asset buildup and weak domestic demand have helped firms gain market share and created global spillovers.
- Beijing has tightened scrutiny of local government spending to slow new investment and has used strategic tools like rare earth controls, a mix that shapes trade leverage and affects manufacturers and jobs worldwide.