Chinese Protectionism

Discussion in 'Asia' started by sealybobo, Jun 17, 2009.

  1. sealybobo
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    sealybobo Diamond Member

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    HONG KONG - Foreign businesses keen to benefit from China's 4 trillion yuan (US$586 billion) economic stimulus package announced last November are being thwarted by Chinese government insistence that the funds are public and their spending must therefore be governed by government procurement law.

    This stipulates that public purchases must give priority to Chinese-made products and domestically generated services. Chinese officials also say the procurement law is largely bypassed in practice, especially by local-authority officials. Efforts are being made to limit such deals.

    Asia Times Online :: China News, China Business News, Taiwan and Hong Kong News and Business.

    Only America doesn't protect our own.
     
  2. sealybobo
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    sealybobo Diamond Member

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    Where is the outrage from the people who complained that foreign companies might get a piece of our economic stimulus money?

    Multi national corporations complained and threated to sue us because for some reason our trade agreements bind us to doing business with other countries, but all of those other countries do protect their own economies/industries/workers.
     
  3. sealybobo
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    sealybobo Diamond Member

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    We can't insist that Americans buy American but the Chinese can?

    'Buy American' Rider Sparks Trade Debate - washingtonpost.com

    Proponents of expanding the "Buy American" provisions enacted during the Great Depression, including steel and iron manufacturers and labor unions, argue that it is the only way to ensure that the stimulus creates jobs at home and not overseas.

    Opponents, including some of the biggest blue-chip names in American industry, say it amounts to a declaration of war against free trade. That, they say, could spark retaliation from abroad against U.S. companies and exacerbate the global financial crisis.

    The provisions also confront President Obama with his first test on trade policy. He must weigh the potential consequences of U.S. protectionism against the appealing slogan of "Buy American" and the jobs argument.
     
  4. Toro
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    Toro Diamond Member

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    It is not good. All of these "Buy American" "Buy Chinese" or whatever are merely protectionist measures. Governments rationalize this behavior by pointing to other governments that do it.
     

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