Beijing defends manufacturing push, says world needs more EVs

Minister says output will help nations meet green goals after US criticises overcapacity

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China's manufacturing capacity is helping the world fight climate change and contain inflation, said Vice-Finance Minister Liao Min, pushing back against US Treasury Secretary Janet Yellen's latest criticism of the nation's industrial excess.

"For decades, China has been a force of disinflation for the world through its supply of manufactured products with good value for money," Mr Liao said in Rio de Janeiro, where he attended this week's meeting of Group of 20 finance ministers and central bank governors.

"It is now also providing green goods for the world as countries try to achieve their carbon reduction goals by 2030," he said. Global demand for new energy cars will be 45 million to 75 million units by then, far exceeding the world's current supply capacity, he added, citing estimates by the International Energy Agency.

Mr Liao spoke to Bloomberg News on July 26, a day after Dr Yellen vowed to "keep pressing China to address its macroeconomic model", which she said is channelling "too much" savings and subsidies into manufacturing and contributing to the overcapacity.