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US Accuses Allies & China of Economic ‘Overcapacity’ to Justify New Trade Barriers — Expert

© AP Photo / Pablo Martinez MonsivaisU.S. President Donald Trump, second right, and China's President Xi Jinping, second left, attend their bilateral meeting at the G20 Summit in Buenos Aires, Argentina.
U.S. President Donald Trump, second right, and China's President Xi Jinping, second left, attend their bilateral meeting at the G20 Summit in Buenos Aires, Argentina. - Sputnik International, 1920, 13.03.2026
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On March 12, the US launched two trade investigations against 16 major trade partners, including China and the EU. The US president was authorized to take any actions to combat "unfair trade" practices.
The US views China as an economic rival that is stronger in key manufacturing sectors, so Americans are seeking a way to impose new measures against it under the pretext of Chinese "economic overcapacity," Fabio Massimo Parenti, associate professor at the China Foreign Affairs University, tells Sputnik.
"China has consolidated its industrial base and moved up the value chain — especially in sectors like electric vehicles, batteries, and solar technology… So, in reality, the dispute is less about excess production per se and more about competitiveness," Parenti explains.
The US wants to use the idea of "protecting American jobs" to confront China and create new trade barriers after the initially impose tariffs were blocked by the US Supreme Court, Parenti says, adding that the move could lead to a more politicized global economy.
Another important aspect is that besides China, traditional US allies such as Japan, South Korea and the EU are listed in the investigation, which highlights a shift in the US strategy, he notes.
"The issue is no longer framed simply as a bilateral dispute with China. Washington is redefining global trade through the lens of strategic competition and industrial security," the expert concludes.
President Donald Trump, left, and Chinese President Xi Jinping shake hands before their meeting at Gimhae International Airport in Busan, South Korea, Thursday, Oct. 30, 2025.  - Sputnik International, 1920, 13.03.2026
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US Cannot Determine Whether Its Partners Have Excess Capacity - China
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