But wait, I thought this only happens in America. Take note of any condemnations from around the world because whoever is complaining is probably ignoring their own protectionist plans. In twenty years of international business I have yet to find a country that does not have protectionist laws in place. It's helpful to limit those measures but at the same time, a stimulus plan is there to help move a local economy and it's paid for by its people. China has to know that an economic recovery is going to be a real challenge since Western economies are not going to rebound with strong buying any time soon.
Either way, how much cheaper will products be from outside of China? They will still probably have to find a way to buy certain specialized high tech items from overseas. It's interesting to note China's previous whinging about the "Buy American" measures in the US stimulus bill and I would hope someone in Washington would make a fuss about it to return the favor just to make a point.
Projects must obtain official permission to use imported goods, said an order issued by China's main planning agency and either other government bodies.Maybe Western businesses that sold their soul to the Beijing government weren't quite as entrenched as they suspected after all. Tough break there.
Foreign business groups worry that foreign suppliers of construction equipment and other goods might be excluded from projects financed by Beijing's 4 trillion yuan (US$586 billion) stimulus. Foreign producers of wind turbines say they have been shut out of bidding on a $5 billion stimulus-financed power project, even though their factories are in China.
"Government investment projects should buy domestically made products unless products or services cannot be obtained in reasonable commercial conditions in China," says the government order. "Projects that really need to buy imports should be approved by the relevant government departments before purchasing activity starts."
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