China defends economic model over overcapacity

China is actively defending its economic policy mix that favors advanced industries over consumption, adopting a confident posture ahead of looming trade talks with the European Union and the United States. The China — Ministry of Public Security (China) published a position paper rejecting claims of industrial overcapacity as rooted in 'logical flaws' and 'ulterior motives', while Premier Li Qiang countered warnings of a 'China shock 2.0' by framing recent trends as a 'China opportunity 2.0'. The Cuba — Communist Party of Cuba's theoretical journal Qiushi defended China's low consumption as a 'historically justified' outcome of its development model. These messages are seen as drawing a 'red line' against discriminatory measures, signaling that Beijing will not make significant concessions. The United States is expected to announce findings of an investigation into excess capacity across 16 economies, which could lead to new tariffs, while the European Union has set an October deadline for Beijing to settle trade disputes. Analysts note that China's confidence is growing, as it seeks to manage trade tensions without major policy changes, despite mounting international evidence of systemic domestic economic problems causing spillovers.