MOFCOM on July 28 published China’s position on the so‑called 'overcapacity' issue, saying the claim that insufficient domestic demand has caused overcapacity is not factual. It notes China is both a manufacturing and a consumption power: domestic demand was the main engine of growth, contributing on average 93% to GDP growth from 2013–2024. By World Bank PPP, China’s total retail sales in 2025 will be about 1.7x the US, making it the world’s largest goods consumption market; China’s physical co

MOFCOM on July 28 published China’s position on the so‑called 'overcapacity' issue, saying the claim that insufficient domestic demand has caused overcapacity is not factual. It notes China is both a manufacturing and a consumption power: domestic demand was the main engine of growth, contributing on average 93% to GDP growth from 2013–2024. By World Bank PPP, China’s total retail sales in 2025 will be about 1.7x the US, making it the world’s largest goods consumption market; China’s physical consumption volumes are already the global highest and per‑capita annual consumption of some industrial goods approaches developed‑country levels. Recent slower growth in retail sales is consistent with a shift from high‑speed to high‑quality growth and consumption upgrading, and should not be equated with insufficient demand. Framing insufficient domestic demand as the cause of overcapacity, MOFCOM says, misapplies micro market phenomena to macro structural analysis.