U.S. Democrats have called on the President Donald Trump administration to press China to curb what they described as “structural overproduction”, essentially demanding an overhaul of Beijing’s economic model.
The lawmakers made the call in a letter to Treasury Secretary Scott Bessent and other senior trade officials as talks opened in Madrid between American and Chinese delegations.
According to Reuters, the letter urged that any bilateral trade deal must include “binding requirements” on Beijing to reduce industrial overcapacity.
The talks in Spain are being led by Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer, alongside Commerce Secretary Howard Lutnick, with China’s Vice Premier He Lifeng heading Beijing’s team.
Democrats on the House Select Committee on China warned that unchecked industrial production in sectors such as steel and solar panels had distorted global markets and undermined U.S. jobs.
“The PRC’s historic and destructive use of structural overproduction to drive economic growth comes at an indisputable cost to U.S. industry, employment, and the stability of international markets,” the letter stated.
Chinese officials, however, rejected the U.S. position, describing the overcapacity claim as protectionist.
“We have repeatedly stated that hyping up the so-called overcapacity in China, which deviates from objective facts and economic laws, is providing an excuse for protectionism,” Chinese foreign ministry spokesman Lin Jian said. “Its true purpose is to curb China’s high-quality development. We firmly oppose this.”
The push by the Democrats underlines deep concern in Washington over China’s economic practices, even as the world’s two largest economies continue to struggle to convert a fragile truce on tariffs into a comprehensive trade agreement.
