Commerce ministry rebuts overcapacity claims
China’s Ministry of Commerce issued a broad position paper on July 28 rejecting international claims of industrial overcapacity, arguing that production imbalances reflect market dynamics rather than state subsidies or trade surpluses. The pushback comes as major economies increasingly cite a "China Shock 2.0" of heavily subsidized exports as justification for erecting new trade barriers against Chinese goods. The paper, titled China’s Position on the So-Called Overcapacity Issue, urged governments to assess capacity disputes objectively through the lens of economics and to favor cooperation over confrontation.
Zijin-controlled Manono project launches Congo’s first lithium exports
Lithium products from the Manono lithium project, a giant African mine owned by Zijin Mining Group Co. Ltd. (601899.SH), recently received local export certification after nearly three years of development. The Centre d’Expertise, d’Evaluation et de Certification, a Democratic Republic of the Congo regulatory body, said on July 22 that it had certified the first batch of lithium products for export from Manono Lithium. The shipment from the mine underscores the DRC’s potential to become a significant supplier of critical minerals for the energy transition, even as the project remains entangled in a long-running dispute involving Chinese, Australian and U.S. interests.
Supertanker navigates Red Sea amid plummeting traffic
Tanker traffic through the Red Sea and crude oil shipments from Saudi Arabia’s Yanbu port have plummeted due to attacks by Houthi militants, threatening a major energy artery that once accounted for half of China’s seaborne crude imports. At noon on July 27 local time, the very large crude carrier Kaizhu, owned by Chinese state-owned shipping giant China Merchants Energy Shipping Co. Ltd. (601872.SH), successfully passed through the Bab el-Mandeb Strait, fully loaded with 300,000 tons of crude oil from Saudi Arabia and heading for Ningbo. It was the only such carrier to pass through the strait in a two-day period.
Industrial profits grow 18.7% in first half
Profits at China’s major industrial enterprises reached 3.9 trillion yuan in the first six months of 2026, up 18.7% year over year, according to the National Bureau of Statistics. Yet, that figure masks a polarized economic recovery. The mining sector’s profits grew 33.5% to 574.5 billion yuan, while the manufacturing sector saw a 20.1% increase to 3 trillion yuan. Profits in the production and supply of electricity, heat, gas and water fell 4.2% to 402.3 billion yuan.
EV charging facilities jump
The total number of electric-vehicle charging facilities in China reached 23.1 million by the end of June 2026, up 43.2% year over year, according to the National Energy Administration. Public charging facilities grew 22.3% to 5 million, with an average power of about 49.35 kilowatts per charger.
Power market trading volume rises in first half
China’s power market trading volume reached 3.7 trillion kilowatt-hours (kWh) in the first half of 2026, a 24.2% year over year increase. Intra-provincial trading volume grew 27.9% to 2.9 trillion kWh, while inter-provincial and cross-regional trading volume rose 12.1% to 771.3 billion kWh. Medium- and long-term trading accounted for 3.3 trillion kWh, and spot trading reached 428 billion kWh. Green power trading volume increased 6.6% to 164.1 billion kWh. Power grid enterprises purchased 398.5 billion kWh of electricity on behalf of users through market-based transactions.
Contact editor Kelsey Cheng (kelseycheng@caixin.com)
