China's overcapacity leading to trade levies just 'an excuse'

The claim by a network of European businesses that trade protectionism measures imposed on China are a result of the country's industrial overcapacity is a "bad excuse", a Chinese expert said yesterday.

Because of a 4-trillion-yuan ($586 billion) stimulus package announced a year ago, China is producing more materials - such as steel, aluminium, cement, chemicals, refined oil and wind power equipment - than it needs, the European Chamber of Commerce in China said yesterday.

Oversupply has prompted Chinese businesses to export to the United States and the European Union (EU), which face mounting domestic pressure to protect jobs amid the financial crisis, it said.