China has introduced an explicit “Buy Chinese” policy as part of its
economic stimulus programme in
a move that will amplify tensions with trade partners and increase the likelihood of protectionism around the world. In an edict released jointly by nine government departments, Beijing said
government procurement must use only Chinese products or services unless they were not available within the country or could not be bought on reasonable commercial or legal terms.
The new edict bans local governments and departments from discriminating against domestic suppliers in their procurement. Foreign companies operating in China argue that the opposite is in fact true and that they have been largely cut out of procurement related to the government’s stimulus package.
Just a few months ago Beijing was raging against a
proposed “Buy American” clause included in the US economic rescue package.
clipped from: www.greenfaucet.com