China complains about overcapacity 'hype'

A war of words between China and the US over management of the Chinese economy escalated on Monday when Beijing dismissed Washington’s concerns about overcapacity as “hype.” In a rare display of anger at US criticism, Lou Jiwei, Chinese finance minister, said worries were overblown and pointedly observed that Washington found no reason to complain when China boosted world demand during the depths of the financial crisis, according to the Financial Times. He was responding after Jack Lew, US Treasury secretary, raised the issue at Monday’s opening of the US-China Strategic and Economic Dialogue. President Xi Jinping’s administration has identified overcapacity as a critical economic challenge and target of “supply side” economic reforms.