February 9, 2009

China rejects ‘Buy China’ policy

A Chinese government official said China would not follow the United State's lead by putting a protectionist provision in its economic stimulus package.

The U.S. Senate voted last week to weaken the Buy American provision in its version of a U.S. economic stimulus plan. The Senate plan must still be reconciled with the U.S. House plan and sent to President Barack Obama for signature.

Nevertheless, we won't practice 'Buy China,' Vice Commerce Minister Jiang Zengwei said at a press conference Monday, Xinhua reported.

It's impossible to meet a country's market demand with only domestic products amid world economic integration. Why should we turn to trade protectionism under the current situation? Jiang said.

We'll treat domestic and foreign products equally as long as they are needed, he said.

The Chinese economy relies heavily on export markets. As such, China must be cautious about provoking retaliatory protectionist measures, a researcher of international economic relations Zhang Xiaoji said.

We should not only oppose trade protectionism in other countries but also support global trade ourselves, said Zhang.