BEIJING (APP – Urdu Point / Pakistan Point News – 24 Mar, 2026) Professor John Quelsh, former Dean of Business Administration, University of Miami school He stressed that the recent US decision to launch an investigation into Article 301 was not directed at China specifically.
Speaking at the ongoing China Development Forum 2026, he shared his views on the investigations.
In an interview with China Economic Net, he said investigations into forced labor and overcapacity target 60 and 16 countries respectively. “It’s just a negotiation tactic,” he added. Quelsch also noted that he believes China and the United States will not be significantly affected by the outcome of the investigation.
At the forum, he highlighted the growing European presence in China, saying: “We are seeing significant investments from German automakers and European pharmaceutical companies such as AstraZeneca. If American companies hesitate to invest in China, European companies are rushing to fill the gap. Whether in pharmaceuticals, healthcare or high-tech, European companies need the Chinese market.”
The US government announced it would launch new trade investigations into “excess industrial capacity” across 16 major trading partners, including China. In addition, the US Trade Representative’s office singled out China’s auto industry as a sector facing so-called “excess capacity.”
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Coelsch sees excess capacity as a normal part of any emerging industry. “When there is innovation, multiple companies tend to enter the market,” he explained. “At times, the total supply generated by this sector exceeds global demand.” He cited the green transition and the electric vehicle industry as an example, where excess capacity can sometimes arise. However, Quelsh is confident that the market will go through a “shakeout” phase. “We have already seen several EV companies exit a job Or absorbed by larger companies. This is normal. Whenever there is a new and exciting opportunity in the market, this kind of adjustment happens.”
Quelsch also stated that he does not view “excess capacity” in EVs as a long-term problem. “If you see it as a long-term problem, then I disagree. For me, it is simply a precursor to market disruption, as only a few top-tier companies will be able to survive in this sector.”
James X. Zahn, Chairman of the Executive Committee blackboard The World Investment Conference (WIC) shares a similar view, “When it comes to the green economy and manufacturing of green products, the situation is different. These sectors require new production capacity and new product development. I would distinguish them from traditional industries that face excess capacity.”
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