On May 22, China's Ministry of Foreign Affairs (MFA) announced that it would sanction twelve U.S. defense companies, including several units of General Dynamics and Lockheed Martin, and ten high-level executives of sanctioned companies.

On May 20, China's Ministry of Commerce (MOFCOM) announced sanctions on three U.S. companies as it added them to the Unreliable Entity List.

In a speech yesterday, Lael Brainard, the Biden administration's National Economic Advisor, spoke at a think tank on the topic of "Responding to the Challenges of China’s Industrial Overcapacity."

During U.S. Secretary of State Antony Blinken's China trip last week, he and his Chinese counterpart exchanged views on overcapacity, a hot-topic issue in bilateral trade relations, as well as on "unfair" U.S. measures against China and China's "unfair trade practices.

At a press conference last week, the spokesperson for China's Ministry of Commerce rejected the concerns about overcapacity in the new energy sector. Instead, he stated, there is a "storage of capacity" to meet the growing demand.

In a recent CNN interview, U.S. Trade Representative Katherine Tai offered a number of comments on China trade issues, including overcapacity, the current Section 301 tariffs, and former President Trump's proposed tariffs on China.

The Chinese Ministry of Commerce (MOFCOM) voiced "firm opposition" against a new Section 301 investigation on Chinese shipbuilding and other sectors, and also against President Biden's calls for raising tariffs on Chinese metal imports, labelling them a violation of international trade rules and vowing to take