According to China.com, on July 28, the State Council Information Office held a press conference. Yan Dong, the Deputy Minister of Commerce, was invited to introduce China's position on the so-called 'overcapacity' issue and answered reporters' questions.
Yan Dong stated that some countries are advocating the theory of 'China's Shock 2.0', which accuses China of threatening Western monopolies through its industrial development and squeezing the development space of Southern countries. This theory is not based on facts and cannot stand.
Yan Dong said that the so-called 'China squeeze theory' fabricated by some countries is a new version of the 'China threat theory'. It attempts to undermine China's cooperation with developing countries around the world, thereby shifting historical and practical responsibilities onto China. This does not truly aim to help developing countries. Facts and data clearly demonstrate that China's industrial development brings opportunities, not threats, to the world. It empowers developing countries, helping them modernize and providing them with the necessary infrastructure.
Daily Economic News reporter: There are two opinions in the international community regarding China's industrial development and technological innovation. One is the "China Shock 2.0," and the other is the "China Opportunity 2.0." What is your view on these two perspectives? Is China's industrial development a shock or an opportunity for the world?
Yan Dong: First of all, this topic is of great interest to everyone, and there is a lot of discussion around it. Some countries have put forward the theory of 'China's Impact 2.0', claiming that China's industrial development threatens the monopoly position of Western countries and restricts the development space of Southern countries. This claim does not hold up to reality and is not tenable.
Over the past decade or so, China has been a significant driver of global economic growth, with its contribution rate remaining at around 30%. By leveraging market advantages, industrial development, and technological progress, China is providing the world with increasing “market dividends,” “development dividends,” and “innovation dividends.” These dividends, when combined, bring more development opportunities and greater potential for growth—what the international community refers to as “China Opportunity 2.0.” We can look at this from four aspects.
First, the development of industries in China serves as a stabilizing force for global supply chains. China possesses the world's largest industrial manufacturing system, with the most comprehensive range of products and the most complete structure. It continuously and efficiently provides various industrial products, effectively supporting global supply stability and offsetting local supply shortages caused by protectionism and geopolitical conflicts. This demonstrates China’s strong resilience and commitment, playing a crucial role as a stabilizing anchor and vital hub in global industrial cooperation. The high-quality production equipment and components exported by China lower the barriers to manufacturing entry for developing countries. From 2012 to 2024, China exported textile machinery worth over $30 billion to developing countries, helping some countries in Southeast Asia and South Asia become important producers and exporters of textiles.
Secondly, China’s industrial development is a new engine for global innovation cooperation. China adheres to innovation-driven development and has found an effective path where technological innovation leads industrial innovation, and industrial upgrading drives technological iteration. Any valuable scientific and technological achievement, with the support of Chinese manufacturing, can be quickly transformed into actual products. This provides an ideal testing ground for “0 to 1” validation and “1 to N” scale-up of various new products and services. China is committed to open innovation, and rapidly growing innovative enterprises offer investors in various countries several times or even dozens of times higher returns. Many innovations in China, such as large-scale artificial intelligence models, follow the open-source approach and are highly favored by countries around the world. The cumulative global downloads of these open-source models have already exceeded 10 billion times, enabling more countries, especially developing ones, to access and afford these new technologies.
Third, China's industrial development is a driving force behind global green transformation. China is accelerating its comprehensive green transformation to promote the green and low-carbon development of industries. By the end of the “15th Five-Year Plan” period, it is expected that the scale of China’s green industry will exceed 20 trillion yuan. The rapid development of China’s green industry has enriched the global supply with new energy products, effectively promoting the global green and low-carbon process. The International Renewable Energy Agency (IRENA) reports that over the past decade, the average cost per kilowatt-hour of wind power and photovoltaic power generation projects worldwide has decreased by more than 60% and 80%, respectively. A significant portion of this is due to products made in China and China’s production capacity. Currently, global energy shortages and the rise in electricity demand driven by artificial intelligence mean that the International Energy Agency predicts that by 2030, global data centers will consume nearly 1 trillion kilowatt-hours of electricity, with 40% of the additional electricity depending on renewable sources. China has significant scale and technological advantages in the fields of solar energy, energy storage, and electrification, which will better meet the future global demand for green energy and industrial development needs.
Fourth, the development of China's industries is a catalyst for improving the well-being of people around the world. The rapid growth of China's industries has provided the global market with high-quality, high-performance products that offer excellent value for money. This has given consumers in various countries more stable and diverse choices. Made in China has improved the quality of life for people worldwide, reduced living costs, and alleviated global inflation pressures. For example, recently, Chinese air conditioners have been very popular in Europe, bringing relief from the heat to local residents. A report by the European Central Bank calculated that if EU imports from China increased by 10% in 2026, the overall import prices in the EU would decrease by 1.6%. China's trade and investment has significantly enhanced the industrialization of developing economies. China has established more than 50,000 enterprises overseas, with an investment total exceeding $3 trillion, with nearly 90% of these investments in developing economies. Chinese enterprises, through local production, procurement, employment, supply chain connections, and regional integration, have driven the implementation of numerous projects in fields such as light industry, textiles, and home appliances. They have also promoted the development of new sectors such as digital and green technologies, enhancing the role of host countries' exports in creating local value added. According to calculations by the Chinese Academy of Sciences, from 2012 to 2025, the local export value added driven by Chinese enterprises in 24 developing economies will increase from $24.4 billion to $142.4 billion, a nearly five-fold increase.
Some countries have fabricated the "China-easing theory," which is a new variant of the "China-threat theory." They attempt to undermine China's cooperation with developing countries around the world, thereby shifting their historical and practical responsibilities. This is not genuine assistance to developing nations. Facts and data clearly demonstrate that China's industrial development brings opportunities, not threats, to the world. It provides empowerment, helping developing countries to modernize and paving the way for them.
