A nation's production capacity surpassing domestic demand is a common phenomenon globally as it mirrors comparative advantages and results from labor division.

Beijing, China (Xinhua) – While certain Western nations portrayed China's increasing exports of new energy vehicles (NEVs) as the result of domestic overcapacity, several Chinese officials refuted this narrative, asserting that export-based reasoning cannot hold water.

He Hailin, a Ministry of Industry and Information Technology official, said that a nation's production capacity surpassing domestic demand is a common phenomenon globally as it mirrors comparative advantages and results from labor division.

He made the remarks when speaking at the fifth episode of the China Economic Roundtable, an all-media talk platform hosted by Xinhua News Agency.

"For instance, 80 percent of U.S.-manufactured chips are exported, 50 percent of Japanese cars are sold overseas, and nearly 80 percent of Germany's auto output is shipped to foreign markets," another guest speaker Ding Weishun, a Ministry of Commerce official, also said, adding the aircraft produced by Boeing and Airbus also rely heavily on overseas markets.

In contrast, China's NEV exports only constitute a small portion of its total production, Ding said.

While 9.59 million NEVs were manufactured in the country last year, roughly over 12 percent of them were exported, Ding said. China predominantly caters to its domestic market, rather than flooding foreign markets with inexpensive NEVs.

It is inappropriate to determine whether a certain product faces overcapacity or not by its exports, He said, criticizing some countries' attempt to influence normal global trade based on that one-sided judgement.

An open and cooperative international economic and trade system brings mutual benefits and enhances the well-being of people around the world, which should be cherished and maintained by all countries, He said.

Reporting by Indonesia Window