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Market Chatter: China Calls on US to Scrap Alleged Excess Capacity Probe

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China called on the U.S. to cease its investigations into China's alleged excess capacity ahead of the meeting between Presidents Donald Trump and Xi Jinping, the South China Morning Post reported Wednesday.

The U.S. Trade Representative launched the probe in March, which looked into the structural excess capacity of 16 trading partners, including China. The probe aligns with Section 301 of the Trade Act of 1974, according to the media outlet.

Michelle Zang, who spoke in behalf of state-backed China Chamber of International Commerce, told the hearing that the probe does not have enough "statutory basis and supporting evidence" and urged the U.S. to "terminate the investigation", SCMP said.

A number of Southeast Asian countries, Japan, India, South Korea, the European Union and Mexico were also covered in the probe, the report said.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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