HONG KONG (MarketWatch) -- China has introduced a requirement that its stimulus projects embrace a "Buy Chinese" policy, a requirement likely to raise the ire of the country's major trading partners amid mutual recriminations of protectionist trade policies.
Buyers supplying government projects can source foreign-produced supplies only if no domestic equivalents are available or if the pricing for the goods is unrealistic, according to an order issued jointly by nine government departments.
Analysts said the edict sent the wrong message for a Chinese economy that depends heavily on international trade. It also appears contradictory after Beijing protested a "Buy American" requirement that was included in Washington's rescue programs unveiled earlier this year.
"Government investment projects should buy domestically made products unless products or services cannot be obtained in reasonable commercial conditions in China," according to an Associated Press report Wednesday citing the government order.
"Projects that really need to buy imports should be approved by the relevant government departments before purchasing activity starts."
The government order was approved June 1 and reported this week by state media.
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