Commerce Ministry Rebuts Overcapacity Claims, Citing 93% Domestic Demand Contribution from 2013-2024
The Ministry of Commerce issued a document responding to overcapacity claims, emphasizing the strength of China's domestic demand. From 2013 to 2024, domestic demand contributed an average of 93% to economic growth, with consumption and investment at 55% and 38%. Retail sales of consumer goods doubled to RMB 50.1 trillion in 2025, making China the world's largest consumer market. China also highlighted its role as a major importer, with zero-tariff policies for 63 countries and cumulative imports exceeding RMB 90 trillion during the 14th Five-Year Plan period.
The Ministry of Commerce recently issued a document titled "China's Position on the So-Called Overcapacity Issue," which reviews the evolution of the global capacity landscape from a historical perspective, analyzes the relationship between industrial subsidies, trade surpluses, economic imbalances, market competition, and "overcapacity," and outlines China's policy practices and future efforts. The document responds to the rhetoric of some economies regarding China's "overcapacity" and underscores the importance of China's domestic demand market.
From 2013 to 2024, domestic demand contributed an average of 93% to China's economic growth, with consumption and investment contributing 55% and 38% on average, respectively. China's total retail sales of consumer goods rose from RMB 23.8 trillion in 2013 to RMB 50.1 trillion in 2025, doubling in size. Converted at World Bank purchasing power parity, China's total retail sales of consumer goods in 2025 were equivalent to 1.7 times that of the United States, making China the world's largest consumer goods market. China ranks first globally in physical consumption, and per capita annual consumption of some industrial products has approached the level of developed countries.
China has been the world's second-largest importer for 17 consecutive years and is a major export destination for nearly 80 countries. China has implemented zero-tariff policies for 63 countries, making it the first major economy to extend zero-tariff treatment to all African countries with which it has diplomatic relations and all least developed countries with which it has diplomatic ties. China is the only country to host an international import expo, having successfully held eight editions with cumulative intended transaction value exceeding USD 580 billion. During the 14th Five-Year Plan period, China's cumulative imports exceeded RMB 90 trillion.
China is not only the "world's factory" but also the "world's market," with domestic demand serving as the main engine of its economy. China continues to expand domestic demand and is committed to achieving a higher level of supply-demand balance, thereby supporting global economic growth.