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"China is taking the initiative to reduce production capacity based on its own national conditions. The efforts are to make the growth model and economic structure move to new economic drivers," he added.

"China did not seek to impose itself on other nations and wanted to develop relationships based on mutual respect and peace," she stressed. "Unfortunately, some nations seem to be unwilling to give China a chance."

"China has always encouraged overseas investment, but more needs to be done to ensure it occurs in a more rational manner," said Pan Gongsheng, head of the State Administration of Foreign Exchange.

"But the US hasn't thought through what their actions might lead to and how it's going to impact adversely on the US," he said. "It is a very short-sighted move, because ultimately you can't prop up inefficient industries forever."

"CITIC Capital is confident about the future growth and prospects of the business and we are actively participating in the bidding process," said a Hong Kong-based spokeswoman.