EU business groups call on China to address industrial overcapacity

Business representatives from the European Union have escalated calls for China to address persistent overcapacity across key industrial sectors, coinciding with scheduled trade discussions between the two economic powers.

EU chambers of commerce cited concerns that China's sustained overproduction in steel, chemicals, and other strategic industries is creating market distortions that harm European manufacturers and global competition. The groups warned that without meaningful action, excess capacity will continue to depress prices and undercut producers worldwide.

The intervention signals mounting frustration among European business communities over the structural imbalances in trade relations with China. Officials from the chambers emphasized the urgency of the issue, noting that their concerns require attention at the highest policy levels as both sides prepare for negotiations.

China has faced repeated international criticism over industrial overcapacity, with governments and trade bodies contending that state-backed production targets and subsidies sustain uneconomical output levels. Beijing has previously acknowledged the need to address these structural issues but progress on implementation remains contested.

The timing of the chambers' statement underscores growing European determination to use diplomatic leverage and trade discussions to secure Chinese commitments on capacity management and fair market competition.