This week’s commercial controversy in China centred around the Beijing government’s “Buy Chinese” directive that gives domestic manufacturers, construction companies and logistics providers priority – some would argue “exclusivity” – in winning contracts related to China’s RMB4 trillion stimulus package.
The desire to protect and benefit Chinese companies is understandable in a tough economic environment where sluggish overseas demand has hit the nation’s export-focused manufacturing and industrial base hard. However, foreign trade organisations, notably the European Chamber of Commerce, have long-since warned of a coming rise in Chinese protectionism related to its domestic economy, and the advancing of discriminatory policies that favour Chinese companies over their international competitors.
China has rejected the accusations. “The purpose of issuing the notice is to ensure a fair and competitive market,” Foreign Ministry spokesman Qin Gang told a press conference this week. He added that the notice complied with China’s 2002 government procurement law “and international common practice,” and argued that foreign enterprises and products “would face no discrimination.” This debate seems certain to continue in the months ahead.
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Protectionism in Chinese Procurement?
This week’s commercial controversy in China centred around the Beijing government’s “Buy Chinese” directive that gives domestic manufacturers, construction companies and logistics providers priority – some would argue “exclusivity” – in winning contracts related to China’s RMB4 trillion stimulus package.
The desire to protect and benefit Chinese companies is understandable in a tough economic environment where sluggish overseas demand has hit the nation’s export-focused manufacturing and industrial base hard. However, foreign trade organisations, notably the European Chamber of Commerce, have long-since warned of a coming rise in Chinese protectionism related to its domestic economy, and the advancing of discriminatory policies that favour Chinese companies over their international competitors.
China has rejected the accusations. “The purpose of issuing the notice is to ensure a fair and competitive market,” Foreign Ministry spokesman Qin Gang told a press conference this week. He added that the notice complied with China’s 2002 government procurement law “and international common practice,” and argued that foreign enterprises and products “would face no discrimination.” This debate seems certain to continue in the months ahead.
This entry was posted on Sunday, June 21st, 2009 at 2:47 pm and is filed under News commentary. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.